Whole life insurance offers many advantages over other types of coverage and is especially beneficial for people working toward long term financial and investment goals. Whole life insurance features level premiums, even as you age, and accumulated cash value, which is guaranteed to your family. What type of coverage is an important decision that needs to be made to protect your loved ones. To learn more about whole life insurance and which policies are right for you, enter your basic information to get free quotes. You can quickly and easily compare policies, coverage and costs before you buy. Take the first step in securing your family's financial future by getting your free life insurance quotes today.

Whole life insurance, which is also referred to as permanent or long term, offers many benefits, including:

Level Premiums - Throughout the time you have your whole life (permanent or long term) insurance policy, your premiums will not change. The rate for your coverage will remain the same, even as you get older in age.

Cash Value Accumulation - Though your whole life premiums will not rise, you will continue to accumulate cash value for the existence of your policy.

Payable for Life - As long as your whole life insurance policy remains in force, it will provide coverage. This addresses the issue of providing money to the family in case of death. Whole life insurance can be guaranteed without the need for special riders, which can be true in universal policies. The death benefit of a whole life insurance policy is significant even later as you age, even after the age of 85. In addition, the death benefit proceeds of a whole life insurance policy are generally income tax free to the beneficiary.

Guaranteed Cash Value - Depending on the kind of whole life coverage you have, you may be able to borrow against your policy at the current loan rate when you need help with temporary needs or emergencies. This depends on the type of coverage, the size of your policy and how long you have owned your permanent whole life insurance. The cash value may be available to you on surrender. The amount of money borrowed from your permanent whole life insurance reduces the death benefit and cash surrender value. All  policies are different and you will need to talk to an agent about specifics to best meet your individual needs.

Freedom to Borrow and Utilize - Some whole life insurance policies allow access to death benefit values while you're living in the even of a chronic and/or terminal illness. Whole or permanent life insurance policies also allows you to access other forms of capital and gives you ease of use for other financial opportunities. The cash values of your whole life insurance policy are not disclosed for FAFSA college financial aid calculators, so your children will not be penalized for your solid financials in this area. In addition, many states offer protection of your whole or permanent life insurance policy from creditors and lawsuits.   

Cash Value Growth is Tax Deferred - Under current federal income tax law, the growth in cash values in your whole or permanent policy is tax-deferred. This adds the potential for tax beneficial income in the future. Moreover, the death benefit proceeds of whole policies are generally income tax free to the beneficiary.

Whole Life Insurance Basics

Whole life insurance premiums are fixed rates that will not increase or decrease during the life of you policy. As such, the premiums are not as cheap as term or temporary coverage rates. When you buy a whole policy, you will pay set premiums for a pre-determined amount of time, such as 20 years. In the initial years of the policy, your premium costs will go to the life insurance aspect of your coverage, with little going to the investment component.

The company that is insuring you will pay out dividends annually. These will either be allocated to your investment component or be used to buy additional coverage. You can choose whether you want your dividends to buy additional term coverage, extra permanent coverage, have it go directly to the investment aspect of you plan or a combination of the aforementioned. Eventually, the dividend payments will be large enough to pay for the cost of the plan directly. As such, after 20 years or the length of your plan, you can have all the benefits of a permanent whole life insurance policy without having to pay premiums.

The greater coverage and investments you have, the higher your dividends will be. As time passes, your investments will grow and your dividend payments will as well. This highly beneficial snowball effect is why whole life insurance policies are best purchased with long term goals in mind. Whole life insurance plans do not become really valuable until they have been in effect for many years, at which point the growth is exponential.

It is important to note that you have little to no say in how the investment component is invested, but you will be given projections as to how the investment could grow over time. The majority if interest growth, which are tax-free as long as they are in the policy. Your dividends are also tax-free as long as they remain in the policy. You can access some of the money in the investment component and, when you die, the full amount of the whole life insurance and investment component is paid to your beneficiaries - tax-free.

Your options when it comes to the dividend vary widely across policies and companies. This is just one reason why it is important to get multiple quotes from companies and ask questions about plans and coverage. Choosing the right whole life insurance plan is an important decision to make, which is why you will want to compare quotes and policies to before you buy a plan.

Whole Life Insurance Overview

Whole life insurance is a particular coverage option suitable for a specific group of investors. Specifically, it appeals to those of us working toward long range financial and investment goals. There are numerous benefits to these types of policies. It features level premiums, meaning you don't pay more as you get older. And with accumulated cash value, the monies you pay into a policy are guaranteed to your family and beneficiaries.

These guaranteed cash values can help you out in multiple ways during the term of your coverage. For example, if you have a family emergency or a temporary need for extra cash, you can get money out of your own policy to address those needs and stay on track. It's a whole life investment in the sense that its benefits begin at enrollment and continue on through the rest of your life.

Whole policies provide coverage for as long as the policies remain in force, no matter how old you get. It's great to know that you can't outlive your benefits with this type of policy. The level premiums make it easy to plan for the expense of this type of policy as time goes by. And the ability to borrow against your policy at current rates gives you tremendous financial flexibility as an investor.

The initial contributions you make to this coverage plan are not tax sheltered, but once the money is in a policy, its growth is tax deferred under the terms of current federal law. And as a death benefit to loved ones, coverage proceeds are usually given on a tax free basis to beneficiaries. What's more, dividends are sometimes paid out to investors in these types of plans, and these dividends are generally tax free as well as long as their amount does not exceed that of the premiums paid.

When people begin to compare the different types of coverage and try to decide which is best for their situation, it can seem daunting and difficult. There are a wide variety of options and it is an important decision to make. There is whole life insurance (permanent and long term), universal coverage (variable and fixed) and term (temporary and short term). Many wonder about cost and rates and what plan is most affordable. What are the advantages of each plan and how will the benefits best care for their loved ones?

It is recommended to first research online to get an idea of benefits and advantages of each plan before you buy. Weigh the pros and cons of each plan. Then talk to friends and family and get professional advice on which type of coverage is best for your situation. You may want to comparison with an online calculator to get instant ideas on rates and cost. One of the best ways to compare coverage, companies, rates, plans and benefits is to get online quotes from multiple agents. Compare these quotes and policies to decide which makes the most sense for your situation and what is affordable for you. A deciding factor may be if there is no exam required or if you the cash value is guaranteed. The best way to find out is to get quotes on whole, universal and term coverages.

Whole and Universal Comparison

Both whole and universal are types of permanent or long term life insurance. For some people, term life insurance is the more affordable option with its cheap rates. However, term life insurance coverage does not meet all the needs people may be looking for in a plan. The best plan for you with the most benefits really depends on your individual situation. Compare the pros and cons before getting quotes from companies so you can better navigate any advice. Because both whole and universal policies are permanent coverage, this next section will discuss both - differentiating between the insurance aspect and the investment aspect of each plan.

Whole and Universal: Insurance Aspect

Both whole and universal policies combine a permanent life insurance component with an investment component. The life insurance component is good for life and the rate does not change or increase over time. The premium is fixed for the length of the policy. Because the rates are fixed, the cost of the premium is typically higher than the cost of a term or temporary insurance premium. However, over the length of the whole or universal policy, the permanent coverage ends up being cheaper overall in comparison to the cost of a term policy that needs to be renewed.

The difference between term and whole life insurance is that term is temporary and whole is permanent. Term life insurance, which is temporary or short term, should only be considered for short term or temporary expenses. These would include items such as your mortgage or the education of your child. These costs will eventually be paid off. Consider types of permanent insurance, whole or universal, for issues such as estate taxes or leaving a legacy when deciding what amount of coverage to buy.

Whole and Universal: Investment Aspect

Whole and universal both have an investment aspect that grows on a tax-deferred basis. When you buy whole or universal insurance coverage, you want to purchase your plan with long term goals in mind. Though the premiums are not as cheap as term insurance rates, the overall return on your investment is higher and your overall cost is lower. The compounding returns and accelerated growth overtime are the primary reason for whole or universal life insurance as an investment.

There are limits to the tax-deferred growth for these plans. The formulas are complicated but basically the more whole or universal life insurance you buy, the more money you can shelter in the investment component.  However, if you make a straight withdrawal from the investments in your whole or universal life insurance policy, you will be subject to taxation on all the growth because it is treated as income and taxed at that marginal rate. The principal, the money you put in to the policy, is not taxable since these dollars were already taxed prior to investing them in your whole or universal life insurance policy.

If you borrow against the investment aspect of your whole or universal life insurance policy, you can receive the investments, with the growth included, tax-free. Loan payments do not need to be made as the interest is accrued to the policy because the total loan amount and interest are paid to the bank after you die. The remainder of the investment and the life insurance component go to your beneficiaries - tax-free.

Whole life insurance is an important decision to make to protect your loved ones and your legacy. Be sure to get multiple quotes from local agents from a nationwide network of companies. Plans and rates vary greatly, so you will want to take the time to compare quotes and choose the best plan for your specific situation and needs. Be sure you understand your options and policy fully before you decide to buy. Compare quotes. When you are offered the plan and coverage that is right for you, at cheap rate, choose this policy. Start securing the financial future of your family by getting free whole life insurance quotes today.