How do you Define Whole Life Insurance?

define whole life insurance

When you define whole life insurance the most important aspect that jumps out is that your policy lasts a lifetime. Whole life insurance is permanent and guaranteed for your whole life unless you stop making your monthly premium payments. Whole life insurance is easily affordable especially for those who lock in their rates at an earlier age. The application process for whole life insurance is super easy with simple yes or no questions without any medical exams. In fact, some whole life insurance companies don’t even ask any health questions on their applications. The two biggest advantages to whole life insurance are that your monthly premiums are fixed for life and your policy builds cash value over a lifetime.


Plus, your policy can’t be cancelled due to age or health once the policy is in force. Whole life insurance is a great option for those wanting protection for a lifetime, premiums that won’t ever increase and a policy that won’t cancel. This lifetime protection is peace of mind for those wanting to make sure they don’t leave their families in a difficult financial situation when they pass away. When considering the importance of this, one way to define whole life insurance is protection for family.  Call us at 800-517-0810 so we can assist you.


Why is whole life insurance a good idea?

You can also define whole life insurance as a good idea because buying a whole life insurance policy to protect you and your family is an important step in taking care of loved ones after you are gone. Once again, whole life insurance lasts a lifetime and can’t be cancelled.   A whole life insurance policy is meant to pay for the expenses your family will incur upon your death. Usually when you choose your death benefit amount, final expenses that are included are funeral costs, any debts needing to be paid, and possibly additional monies to be left to family members.  This means your family is taken care of in their time of need. Plus, a whole life insurance policy is easy to budget for since your monthly premium payments are fixed for life.

Of course, each family situation is different but if you are wanting a small life insurance policy to cover your final expenses than whole life insurance is your best bet. Assurance life has access to over 25 of leading whole life insurance companies in the US. We help individuals, parents and grandparents daily to find the best whole life insurance plans so their families are protected at a time when they need it the most.  Whole life insurance lasts for as long as the premiums are being paid so another word to define whole life insurance is permanent because it will last for as long as payments are current.

How long do you have to pay for a whole life policy?

This will depend on the type of whole life insurance policy you purchase. Most individuals will pay on their policies until they die. However, limited pay whole life insurance works completely different. A limited pay whole life insurance policy gives you the protection for a lifetime but allows you to have your policy paid up in certain amount of time or until you reach a certain age. Most common are 10 year or 20 year limited pay whole life insurance policies. In this situation, you still have the protection you need but you don’t have make payments the rest of your life because the policy is paid up in 10 or 20 years.

Sounds great, so what is the catch? Well, your monthly premium payment will be higher since you are only paying for a shorter period of time. However, this a great way to purchase whole life insurance if you can afford the increase in monthly premiums. Actually, an excellent way to purchase a children’s whole life insurance policy.


Can I borrow against my whole life insurance policy?

Yes! You can borrow against your whole life insurance policy. When you make your monthly premium payment, part of the payment is put into a separate account which builds cash value. This means another way to define whole life insurance is savings because this cash value can be borrowed against without any questions asked. Plus, there is no application for the loan and you can take as much time as needed to repay it back. However, if you don’t repay the loan, the loan will be subtracted from the policies death benefit. It does take many years before any cash value will build up in most whole life insurance policies so keep this in mind.

What does it mean to surrender a whole life insurance policy?

Once again, most whole life insurance plans will build cash value over time. When a policyholder wants to surrender their whole life insurance policy, it simple means they want to cancel it completely. Once the policy is cancelled, any cash value will be paid out to the policyholder less any surrender charges. Insurance companies use these surrender charges to penalize someone for cancelling their policies early. The amount paid out to the policyholder after surrender is called the surrender value. If you want surrender a whole life insurance policy you simply just need to contact the insurance company directly.

Usually a form or formal letter will be required to finalized the surrender process. Once the company receives your request your funds should be delivered to you in shortly after. However, you need to talk to your accountant to see if any tax consequences will be due. Most of time, any funds earned over the amount you paid into your policy will be taxed at your ordinary income rate. Once again, consult your accountant for clarification.


Why choose Assurance Life for your whole life insurance policy?

Assurance Life has access to over 25 of the top whole life insurance companies in the US. Having access to numerous companies allows us to shop of all our companies to find you the best coverage and the best price whole life insurance plan. Its important not to use ONE company who only has ONE plan to offer. Assurance Life helps individuals everyday with their final expense insurance needs and we currently have licensed agents standing by to assist you. Call us at 888-510-1381 so we can help you.