Whole Life Insurance

Lifetime of coverage: Whole life insurance

Whole life insurance is the other big category of life insurance besides Term Life Insurance. It offers death benefits not only during the period in which you are paying premiums, but even until death.

There are two types of whole life insurance: limited payment life and straight life. The limited payment life plans have the insured pay premiums for a limited period of time. The death benefits are still paid out even after this period is over. Straight life plans have the insured paying premiums until death and guarantees the payment of death benefits to the beneficiary.

An advantage of whole life insurance is the benefit of a cash value that will be paid in lump if you were to ever cancel the policy. Many people choose to enroll in a whole life insurance policy during their working years and choose to use the cash value amount after their retirement to supplement their retirement income. Others use the cash value to pay for the premium and have the policy in a sense, pay for itself. Whole life insurance provides a great way to be insured and have something later if you decide to cancel the policy.

There are other variations of whole life insurance (Universal and Variable) and you can also learn about those on this site. For more information on whole life insurance and its pros and cons, check out the web sites listed below.

So be sure to check out our pages about Term Life Insurance, Cheap Life Insurance, Globe Life Insurance, and Variable Life Insurance elsewhere on this site.