Whole Life Insurance Advantages

The reasons why you would choose whole life are;

  • You have a permanent protection needs
  • You are not eager to pay life-long premiums
  • You are concerned about inflation eroding your protection (since values can fund additional insurance)
  • You want cash value in the policy but are more cautious and prefer the company to be in control.

Uses of Whole Life;

  • Estate Creation
  • Estate conservation/equalization
  • Charitable donations
  • Business applications
  • Estate Planning
  • Possible marriage or remarriage later in life
  • Possible disability of a child

Main Features of Whole Life

  • Provides lifetime level coverage
  • Provides lifetime level premium
  • Has a guaranteed cash surrender value
  • Provides tax-advantaged growth
  • Generates dividends (partial refund of overpayment of premiums) that can:
  • pay the premium
  • buy additional insurance
  • accumulate on account
  • be taken in cash
  • be changed from one use to another
  • Premium payment can cease at or after premium offset point
  • Policy can be surrendered for its total cash value
  • Retirement income can be supplemented using living benefits program

In the long run Whole Life Insurance may actually be cheaper than term or Term to 100 due to the fact that at some point there can be enough cash built up inside the policy that you no longer have to pay premiums.


With Universal Life you have control the investments inside the insurance policy. If you have no interest in being in charge of the investment portion, than a Whole Life Policy may provide you with better returns. The Insurance company is in charge of investing the money. You and your emotions are not.

Many whole life policies have excellent returns that are the envy of many 'universal' life insurance investors.

Whole Life Insurance Diagram

The answer you need to know: How much will I need to pay in premiums, to purchase enough insurance that will cover the tax bill my estate will have to pay?

Whole Life Tips and Traps

Estate Planning

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