Whole Life Insurance - What is Whole Life Insurance and How Does It Work?

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Whole life insurance provides for a level premium, and a cash value guaranteed by the life insurance company. The primary advantages of whole life insurance are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, mortality and expense charges.

Whole Life policies are guaranteed as long as the scheduled premiums are maintained. Some Whole life Policies also pay a is dividend which could vary depending on how well the life insurance company is performing. If the life insurance company's investment portfolio is performing well and the policies are not experiencing a higher mortality than projected, premiums are paid back to the policy holder in the form of dividends. Policyholders can use any dividends earned in a number of ways. The three main uses of dividends earned are: to lower or vanish premiums, to purchase more insurance or received in cash.

1stQuote.com does not sell Whole Life Insurance online and this summary is only intended as a brief thumbnail sketch of this product. Whole life insurance products are more complicated than basic term life insurance and you may wish to consult a local life insurance agent if you are interested in whole life insurance products.