The 6 Best Whole Life Insurance Policies of 2020 – Get our quote in 5 minutes

What is whole life insurance?

Whole life insurance is a type of permanent life insurance that covers policyholders up to a declared death benefit for life. It also allows you to build cash values ​​that you can borrow from, which people sometimes use to help finance an important purchase, such as a home or a child's education. Whole life is different from term life because it covers you for life (as long as premiums are paid), while term life only covers you for a specified period of time.

Death benefits or subsistence benefits

Death benefits and subsistence benefits are two different elements of a life insurance policy. Death benefits can be defined as the sum of money that a life insurance company agrees to pay to the beneficiary in the event of death. Subsistence benefits, also called accelerated death benefits, are funds that the insurance company agrees to keep you going while you are still alive. Living benefits can be sold as additional features that can be added to a life insurance policy through a cyclist.

In some cases, a life insurance company may provide life benefits as part of a life insurance package. Examples of life allowances include knights with critical illness, knights for long term care and other cash advance agreements that take money from the amount of the death benefit and pay you while you are still in life to access treatment or because of predefined difficulties such as disability or loss of employment.

Whole life policies also provide access to cash values ​​through loans, each insurer manages them differently. Loans can be tax free or not and can reduce the value of the allowance in the event of death or not, depending on the contractual conditions. Some life insurance policies require repayment of a loan before obtaining the death benefit, although most would likely reduce the death benefit.

Life insurance with respect to the term and universal life

Whole life is different from term life because term life only provides coverage for a limited period of time, while whole life offers coverage with a lifetime death. Universal life is another type of life insurance. permanent similar to the whole life.

While universal life and whole life both build cash values, universal life policies offer investment options that can help policyholders increase their cash values ​​more quickly. Universal life insurance policies sometimes offer additional flexibility in premium management, however universal life insurance policies may also involve greater risks due to market volatility.

Why should you get full life insurance?

Life insurance is generally considered a tool to protect your family in the event of death, to provide them with financial resources so that they do not have to reduce their standard of living or go through financial difficulties. There are also many other reasons why people get life insurance:

Building savings through the accumulation of cash values. To get coverage for children, take out long-term insurance that's convenient for them while they are young or as a savings vehicle to build cash for them. It can be used as collateral for the mortgage, instead of buying mortgage insurance. The advantage of buying a life insurance to guarantee the mortgage rather than mortgage insurance is that it offers the beneficiary the flexibility to do as they see fit with the death benefit, while if you buy a mortgage insurance, the death benefit will go to the lender. For wealth planning or as tax protection.

Whole life insurance can provide security in many of these situations, ensuring peace of mind, flexibility and the ability to maintain your current lifestyle.

How much does whole life insurance cost?

Whole life insurance is more expensive than term life insurance because, in addition to paying the death benefit premiums, policyholders also contribute to the cash value of their policy. Starting around 30 years old, you can expect to pay an average of $ 100 per month for $ 100,000 in life-long coverage. People who purchase coverage later or purchase larger policies can expect to pay higher premiums. Finally, your health and the type of plan your life insurance company offers you, as well as cash value options and cyclists, will have an impact on costs. These are some basic sample prizes:

$ 100,000
$ 250,000
$ 500,000
$ 1,000,000 of

30 years
$ 89.44
$ 212.50
$ 420.65
$ 827

40 years
$ 135.63
$ 327.99
$ 651.63
$ 1,289

50 years old
$ 216.80
$ 530.92
$ 1,057.49
$ 2,101

60 years
$ 350.35
$ 864.78
$ 1,725.21
$ 3,436

Is whole life insurance worth it?

Whole life insurance is ideal if you want to protect your family's financial security while continuing to save money. Unlike the life of the life insurance, which ends at the end of the same, the whole life allows you to keep savings in your policy that grow over time. These savings can be used to borrow money if necessary, and since a full life policy covers you for life, you can count on a death benefit as long as you pay the premiums. Your whole life should be part of a financial strategy, it can have tax benefits and help you build wealth while maintaining your life insurance.

How we chose full life insurance companies

We have reviewed over 25 companies and rated them for financial stability, reputation, customer satisfaction and complaints. We then checked the policy options they offered, the average prices and those that offered the maximum value for cyclists or the additional features. Life insurance companies that offered full life policies with dividends and life benefits were considered as part of our assessment. In our review we have ranked the best life insurers to find the best life insurance policies for 2020, highlighting the important features to help you ask the right questions when buying life insurance and making the best choice.