Whole life insurance* meets long term needs. Generally more expensive than term life coverage, whole life insurance protects the insured person for an entire lifetime regardless of age, provided that the policy is kept up, i.e., the premiums are paid.
Major Advantages
- This coverage offers more advantages as well as lifetime coverage regardless of the age of the insured person at the time of death.
- Most whole life policies have fixed premiums, which makes it easier to plan your personal or family budget.
- The surrender value of whole life insurance can be used to obtain a cash advance or cashed in by surrendering the policy.
- Benefits paid out upon death are non-taxable.
- Whole life insurance is sold alone or in combination with other life and health insurance products.
Main Features
- Generally speaking, the most common type of whole life insurance is with fixed premiums, i.e., premiums that remain the same for the life of the policy.
- It also usually features a surrender value-a cash value that is paid out to the insured person if the policy is voluntarily terminated.
- Other types of whole life insurance have premiums that vary at certain dates over the life of the policy.
- Whole life insurance sometimes comes with a pre-payment option, which provides for the advance payment of a sum to the insured person to pay expenses related to a terminal illness.
- It can also include a paid-up insurance option, which allows the insured person to stop making premium payments, but remain insured at an adjusted level of coverage.
- A number of add-on coverage options can be added to a whole insurance policy:
- Disability insurance;
- Accidental death or dismemberment coverage;
- Accidental fracture coverage;
- Coverage for the insured person's spouse or children;
- Guaranteed insurability;
- A premium waiver in the event of disability;
And others
