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Whole life insurance: What is whole life insurance?

Whole life insurance is also called a permanent insurance in the sense that as long as premiums are paid, the whole life insurance policy is in force. In other words, whole life insurance is a basic type of permanent life insurance which can provide life-time protection at a level premium. Whole life insurance not only provides coverage similar to term insurance but also provides an investment vehicle. Premium paid consists of two elements – one portion going towards insuring the life and the other towards an investment like mutual funds, stocks etc.  

Because of the type of the coverage, the premium of the whole life insurance is more than that one pays for a term life insurance. For people who need to protect the loved ones until, say, the children complete their education and go to work; term life insurance may be the right one. But, if one can afford the higher premium, whole life insurance makes sense. Before buying whole life insurance weigh in all factors and then take a decision. Once a decision is made to go in for a whole life insurance, shop around and get as many quotes as possible.  

One way to reduce the premium on whole life insurance is to buy your homeowners insurance, if needed and auto insurance also from the same insurance company. For more information on whole life insurance, please visit the various sources given on this website.