Whole life policies are very similar to other types of life insurance products except that once you sign on the dotted lines you are obligated to pay the premium for a set duration of your life in order to enjoy the benefit of insurance for the duration of your life. There are generally 6 types of whole life insurance which an individual can choose from. We will go into detail about the benefits that each provides below.

One of the most popular types of whole life insurance is “non-participating” where the values of the policy, how much will be paid for claims, premiums etc are actually determined at the onset of the policy and can’t be altered after the issue. Once you receive the life insurance quote, those are the figures that you will be paying regardless. The benefit of this type of whole life insurance is that the insurance company will assume all risk of future performance of the policy without having the policy holder do anything. The downside is that if nothing actually happens to you which may be already factored in when calculating the premiums then you end up loosing value on the policy.

There is also a participating whole life insurance policy which despite its similarity to the above named is different in that the policy holder participates in the profits of the insurance shares. Excess profits will be returned to the policy holder in the form of dividends or refunds. In this way the performance of the insurance company is shared with the participating client.

Typically the most simple of whole life insurance require the policy holder to pay premiums every year for the rest of their life in order to maintain the policy. There are also options open by most insurers where the policy holder can invest more in the life insurance policy in the beginning then stop paying the premium after a specified time but still enjoy the benefits of the policy coverage until death. There are even some whole life policies which go as far as to pay you an amount of yearly return after you have paid for the policy in full.

One good aspect of whole life insurance is that all policies are guaranteed with regards to their cash values regardless of the performance of the company, its portfolio of clients and also change in your own health. Another benefit seen by policy holders is the liquidity of their inherent cash values. With whole life insurance products liquidity is enough to be used for investment capital. Cash values are also considered tax free up to the point that they exceed the total premium payment in which case the rest cash value can be obtained through a policy loan.

Below we have listed a few of our preferred insurers and listed each of them with their specialty.