Whole Life Insurance

Instant Quotes, Rates, & 8 Best Whole Life Insurance Companies

Life insurance is an incredibly valuable financial asset that can help provide you and your loved ones with the financial protection you deserve. If you have one or multiple individuals who are currently dependent on your income for their well-being, then purchasing a quality life insurance policy is especially important.

This article will briefly examine one of the most important categories of life insurance—whole life insurance—and also discuss how a whole life insurance policy can be used to complete your financial portfolio.

Quick Navigation

What is Whole Life Insurance?
What is the Difference Between Whole and Term Life Insurance?
Pros and Cons of Whole Life Insurance
Whole Life Insurance Rates
Who is Whole Life Insurance Best For?
What are the Best Whole Life Insurance Companies?
How To Apply for Whole Life Insurance

Whole Life Insurance

What is Whole Life Insurance?

Whole life insurance is a type of permanent life insurance that provides you with lifelong financial protection (via the “death benefit”) in addition to providing you with a usable cash value.

Whole life insurance policies are popular among long-term savers with families. They can count on the insurance component of the policy to provide them with a sense of financial security while also counting on the cash value component of the policy to provide them with an opportunity for growth.

With a permanent life insurance policy, as the name might imply, you will be able to receive coverage that will last for your entire life. Within the broader category of permanent life insurance, one of the most popular options available is referred to as whole life insurance.

What is the Difference Between Whole and Term Life Insurance?

People with Whole Life InsuranceGenerally speaking, most life insurance policies that are currently available can neatly fall into one of two policy categories. Term life insurance policies are the most popular type of life insurance policies.

Unsurprisingly, these policies are almost always the ones that are most affordable. With a term life insurance policy, you will pay a monthly premium over a predetermined amount of time. If you pass away during this specific period (referred to as the “term”), then your beneficiaries will receive a predetermined death benefit.

Typically, term life insurance policies will provide you with coverage for 10, 20, or 30 years. Depending on your age and your health, you may be able to access a term life insurance policy for less than $10 per month.

However, term policies are merely the most basic category of life insurance policies that are currently available. The more comprehensive category of life insurance is referred to as a permanent life insurance policy.

Pros and Cons of Whole Life Insurance

If you are considering purchasing a life insurance policy, you might be thinking of purchasing a whole life insurance policy. While whole life insurance policies have many benefits to offer to their policyholders, there are some potential downsides as well. Therefore, it is important to explore the pros and cons of whole life insurance in order to determine if this is the right type of policy for you.

The Pros of Purchasing a Whole Life Insurance Policy

Perhaps the greatest benefit to purchasing a whole life insurance policy is the fact that your benefit and premium will never change. Once you are locked into a policy, you can count on the premium remains the same. In addition, you already have a policy in place so, as you get older or if you become ill, you don’t have to worry about being denied coverage.

Another benefit to purchasing a whole life insurance policy is that it not only provides your loved ones with financial protection if you should pass away, but it also acts as an investment. As your whole life insurance policy grows in value, you can borrow against it if necessary. In addition, the interest that your whole life insurance policy builds is interest-free. Since professional investors handle the funds in whole life insurance accounts, you can count on the funds to grow.

The Cons of Purchasing a Whole Life Insurance Policy

Just as there are several pros associated with purchasing a whole life insurance policy, there are some potential downsides as well. For example, whole life insurance policy premiums tend to be far more costly than the premiums associated with term life insurance policies. For more information on term or whole life insurance click here. Furthermore, whole life insurance policies do not offer the same payment and benefit flexibility as universal life insurance policies. At the same time, if you are looking for a permanent life insurance policy that is low-maintenance, a whole life insurance policy is the way to go.

Whole Life Insurance Rates

Whole Life Insurance RatesNaturally, a whole life insurance policy will usually cost significantly more than a term life insurance policy, even if the death benefit is the same and the policy is being issued by the same life insurance provider.

The primary reason why whole life insurance costs more than term life insurance is that these policies not only offer a tangible cash value but they also provide you with coverage that will last your entire life. This means that, because whole life insurance policies are a form of permanent life insurance, the death benefit of a whole life insurance policy will be guaranteed to be paid out in the future.

There are other factors that affect the cost of whole life insurance policies. They are:

  • Age
  • Health
  • Family history
  • Lifestyle
  • Occupation

Depending on your job, family history, existing health conditions, age, and lifestyle choices (smoking, skydiving, etc…) your rates will differ. This means it can be hard to know how much whole life insurance will cost for you without getting more information.

However, to give a few examples, the chart below shows the cost of whole life insurance for various face amounts. These rates are for a 35-year-old male and female, in good health, who are not smokers.

Face Amount Male Rate Female Rate
$250,000 $104/mo. $96/mo.
$500,000 $168/mo. $144/mo.
$1,000,000 $280/mo. $240/mo.
$2,000,000 $528/mo. $448/mo.

Who is Whole Life Insurance Best For?

The strengths of whole life insurance policies are best summarized in this chart:

Strength Description
Cash value Over time, cash value is accumulated that can be borrowed against. This is a strong investment tool if used right.
Whole life coverage Your coverage lasts your entire life. No need to worry about it expiring.
Fixed rates Whole life insurance rates typically never change. You can lock in low rates at a young age that will never increase as you grow older.
Estate planning Whole life insurance policies can span multiple generations. Many riders allow you to protect your estate and assets to build a trust and pass assets on to your family.

Whole life insurance is a bit more nuanced than most term life insurance policies. With term life insurance, you are functionally “renting” financial security, but with whole life insurance, you are actually building equity.

The longer you are able to go without withdrawing from the cash value of your policy, the quicker that policy will accumulate additional value. If you are able to be a disciplined and patient saver, your whole life insurance policy may be eventually outperforming the stock market (while still providing you with financial security via the death benefit).

Because of the unique structuring that can be seen in a whole life insurance policy, these policies are often considered to be ideal for people who are hoping to balance growth and security.

If all you are looking for in a life insurance policy is financial protection, then you would likely be better of using a term life insurance policy. If all you are hoping for in a financial asset is growth, then you would likely be much better off investing in an S&P 500 Index Fund.

However, if you are looking to balance multiple financial objectives at once, then a whole life insurance policy may be exactly what you’ve been searching for.

If you currently have young children, then the security portion of your whole life insurance policy will protect them until they are old enough to support themselves on their own. The growth portion of the policy, in the meantime, can also help you prepare for retirement and relevant late in life expenses.

What are the Best Whole Life Insurance Companies?

There are currently many different whole life insurance providers available for you to choose from. As stated, the whole life insurance policy that makes the most financial sense for some families may not make as much sense for others. It is important to do your research and compare multiple different options before you make any final commitments.

Here are some of the most highly rated whole life insurance providers in the industry:

Company A.M. Best Rating Customer Reviews
Protective Life A+ 4.4 / 5
Prudential A+ 4.2 / 5
Banner Life A+ 4.2 / 5
AIG A 4.1 / 5
Lincoln Financial A+ 4.0 / 5
Mutual of Omaha A+ 3.9 / 5
North American A+ 4.0 / 5
Ameritas A+ 3.8 / 5

1. Protective Life

Protective Life has options available for multiple different health classes. Additionally, they are consistently recognized for having excellent customer service.

Our Protective Life Insurance Review

2. Prudential

Prudential is one of few companies that has A+ rating from AM Best. Since it first opened in 1875, Prudential has been one of the most reliable companies in all of the life insurance industry.

Our Prudential Life Insurance Review

3. Banner Life

Banner Life statistically averages eight times fewer complaints per customer than the average whole life insurance provider. The company also has a very extensive history.

Our Banner Life Insurance Review

4. AIG

AIG offers a very wide range of life insurance policies and other valuable assets that make it easy to build a comprehensive financial portfolio. Some of these include travel insurance, mutual funds, annuities, long-term care insurance, and numerous others.

Our AIG Life Insurance Review

5. Lincoln Financial

Lincoln Financial is also quite flexible—its college savings plans and retirement assets can be incorporated with a life insurance policy to help plan for every stage of life.

Our Lincoln National Life Insurance Review

6. Mutual of Omaha

Mutual of Omaha is typically among the most admired life insurance companies due to their commitment to various causes as well as their commitment to their customers.

Our Mutual of Omaha Life Insurance Review

7. North American

North American Company offers a distinctive Indexed Universal Life insurance which can often produce greater returns on investment than many of its alternative options.

Our North American Life Insurance Review

8. Ameritas

Ameritas is yet another life insurance company that is highly reviewed by its clients and is also able to help build more comprehensive portfolios (with numerous banking products to choose from).

Our Ameritas Life Insurance Review

Though there are still many other life insurance providers that you will have the option to consider, this list can help you begin searching in a productive direction. Once you have been able to effectively identify your current needs and the budget you have for a policy, finding an option that can work for you should be significantly easier.

How To Apply for Whole Life Insurance

With any large investment in life, you want to take the time and make sure you are educated before making a purchasing decision. The best way to do this in the overwhelming world of life insurance quotes is to first contact an independent life insurance agent.

Our agents work with over 50 of the best life insurance companies, providing whole and term life insurance.

We seek to understand your personal situation, in order to identify the financial needs of your family and find you the best whole life insurance policy in order to get them the protection they deserve.

Give us a call today, or get started now with our online quoting engine!

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