Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Whole Life InsuranceWhole life insurance is insurance that can be purchased at nearly any age and that doesn’t expire. Often people will view whole life insurance as an investment because after a period of time it has a cash value. In addition, many insurance companies allow you to cash out on the policy early.

For example, if you pay your premiums for 15 years and then learn you have a terminal disease and you need the money to pay for medical expenses, you want to travel or whatever, you can claim some of your benefit early. This, of course, depends on the terms of your policy.

Lastly, a whole life insurance policy offers a guaranteed benefit. If you pay your premiums and you die the death benefit will be paid to your beneficiaries.

Read on to learn all about whole life insurance basics and then if you want to compare whole life insurance quotes online just enter your zip code above! (You can also compare term life quotes and quotes for other types of life insurance plans)

Your Whole Life Insurance Options

The truth is that you have quite a lot of whole life insurance options. Your insurance company, or the insurance company you eventually choose to purchase whole life insurance from, may have additional options not mentioned here. That is because an insurance company may offer other options to be more appealing to a specific group of people.

The chief types of whole life insurance are Participating, Non-Participating, Level Premium, Limited Payment, Single Premium, and Indeterminate Premium Whole Life Insurance.

Participating whole life insurance is an insurance option that is sort of like investing in the insurance company you buy your insurance from. Every year the company assesses its financial health to see how much money it made. They have to consider everything from received premiums to claims paid and everything in between. If the company has a good year then customers who have a participating policy will receive a check from the company. These folks pay higher premiums and continue to pay higher premiums whether the company has a good year or not. In addition, participating whole life premiums don’t change over the years and pay out upon the policyholder’s death.

A Non Participating whole life policy offers the same insurance benefits as a Participating policy, but without the dividends paid. This also means that the premiums are lower.

In the case of Participating and Non Participating policies, the insurance company agrees to pay the death benefit regardless of the amount of money the policyholder has put into the policy. What this means is if the policyholder starts a policy today and tomorrow he or she dies, as long as it was not suicide, the insurance company has to pay the claim.

Free Insurance Providers Comparison

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

Level premium whole life insurance is an insurance option that ensures the premiums don’t change over the years. When you don’t have a level premium policy, as you get older your premiums increase. However, with a level premium policy you start paying out at a higher rate to cover what would increase later. Think about it this way, at 20 you purchase a policy that cost $80 a month and increases over time; if, however, you purchase a level premium policy then your premiums start at $160 a month but never increase, even if you live to be 100.

Limited payment insurance means that you pay much higher premiums over a shorter period of time so that you don’t have to pay any premiums when you are older. Using the previous example, if you purchase the policy at 20 you might pay $500 a month for 10 years and then never have to pay another premium.

Single premium whole life is pretty simple, you pay all your premiums in one payment and never make a payment again. As you can imagine, this type of policy isn’t often written because it requires a lot of upfront money, it’s sort of like buying a house without taking out a loan.

An indeterminate premium whole life policy allows for adjustable premiums over the years. What this means is that your premiums will increase when your health risks increase, as you get older, and can decrease if you have an illness that you recover from, or you quit smoking, lose weight, get your cholesterol under control and so on. This policy will establish a maximum premium so the insurance company cannot simply change your rates to whatever they want.

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

Choosing the Right Life Insurance Option

The bottom line is that no one can choose the best life insurance for you but you. You should consider your income, your projected income, how much insurance you need, if you can afford higher premiums, who your beneficiaries will be and anything else that you find important. You may also want to speak to an insurance expert to get their advice on what option to choose and how much coverage you need.

Choosing the Right Whole Life Insurance Company

Choosing the right insurance company is just as important as choosing the right policy type. Because this is life insurance, you need to ensure that the company that you choose is financially sound and well established. If an insurance company goes out of business, they are under no obligation to pay your benefits. Some will sell the policies to another company, but others may not.

Getting the best rate is important too and that is where use of a free life insurance quote tool comes in. Fill out the questionnaire and it will provide you with quotes from reputable insurance companies. It is fast, much faster than visiting individual companies or company websites.

To find a whole life insurance policy and company, just click on the rate tool now. You can compare quotes from many different providers with many different types of policies. Get started now!