All About Whole Life Insurance

Whole Life Insurance is permanent life insurance, which means the policy holder can withdraw money paid in or borrow against the cash value. Whole Life Insurance has the advantage of a fixed annual premium and guaranteed death benefits. Premiums are much higher than term life policies at first, but over the life of the policy the two policy types roughly even out in terms of total cost. While Whole Life Insurance build value over time, it may not be as strong as other savings options in terms of the rate of returns. Also, dividends are not guaranteed with whole life.

Universal life insurance is similar to Whole Life Insurance, but it offers more flexibility in premiums and may offer stronger returns over time. It also has a cash account and accrues interest.

The variety of policies available is intimidating enough to many people. With dozens of optional riders available, and variations even within individual rider classes, competent professional help is definitely recommended when selecting life insurance. It should be noted that the life insurance policies offered by many employers, while an attractive benefit, are typically not adequate to meet the needs of the insured's family in the event of an untimely death. The total amount of life insurance carried should be enough to pay off any mortgages, car payments, credit card debt, and any other major outstanding debt, leaving the survivors in a solid financial situation.