Whole life insurance policy is permanent insurance that is meant to last your entire life. Whole life is the opposite of term life insurance that covers a specific amount of time such as 10, 20, or 30 years. A whole life policy never expires, and the premiums are level and don’t increase during the life of the policy. The best whole life insurance plans build cash value on a tax-deferred basis.
The death benefit is guaranteed never to decrease to be paid to your beneficiary when you pass away. You can take loans from it or use it to offset premium payments. Some whole life policies also offer the opportunity to earn annual dividends.
Some of the whole life insurance pros and cons include:
- Lifetime permanent coverage
- Guaranteed level premiums (fixed rate) for the life of the policy
- Guaranteed death benefit (never decrease)
- Guaranteed cash value (with compounding interest)
- Riders can be customized to your specific requirements
- Paid up additions to maximize cash value growth
- Tax-free policy loans
- Cash value has tax-deferred compounding growth
- Opportunity to earn annual dividends
- More expensive than term life insurance
- Low returns on cash value can be a poor investment choice
- You pay interest on the money you borrow from your life insurance
Before making a decision to apply for a whole life policy, research whole life insurance rates with multiple top rated companies to compare the rates. We can help you secure whole life insurance quotes from different insurance carriers to get you started to ensure you get the one that most effectively meets your needs.
WHAT TO LOOK FOR IN A WHOLE LIFE INSURANCE COMPANY
- Reliable financial strength – look for whole life insurance providers that have top financial strength ratings to assure the company will be able to pay a death claim to your beneficiary. There is a limit on consumer protection if the insurance company goes bankrupt. Guarantee Association backs up policies up to $300,000 only. Choose a company with:
- A “excellent” or higher from A.M. Best
- AA “very strong” or higher from Standard and Poor
- A “high quality” or higher from Moody
- Customizable policies – each person’s life insurance needs are different depending on their situation. Highly rated carriers provide extra riders that you can customize based on your needs. Example: a disability protection rider and end-of-life care rider will allow you to borrow on the death benefit to pay for a final expense such as medical treatments or hospice care.
- Minimal consumer complaints – check the National Association of Insurance Commissioners (NAIC) for the number of confirmed complaints that the insurance company receives. Choose the company with fewer complaints or the company that acts on consumer complaints quickly. Pick a company that ranked below the national median for complaints on individual life insurance policies.
- The company pays dividends – Most whole life policies are participating policies, this means that policyholders participate in the company’s profit by receiving a dividend annually. Although dividends are not guaranteed, companies that are consistent in paying dividends are a sign that they are a good product and insurance company. Choose companies that have a decades-long history of paying dividends annually.
Best Whole Life Insurance Plans
Here are some of the best whole life insurance plans, and what you need to know about them:
Northwestern Mutual is one of the largest direct life insurance writers in the United States. It dominates the market in terms of whole life coverage and pricing. It has a rock-solid financial rating with an A++ rating in A.M. Best, AA+ in Standard & Poor’s and Aaa in Moody’s.
Northwestern Mutual also received 4 out of 5 scores in customer satisfaction rating from J.D Power & Associate.
Northwestern Mutual offers the most policy options among insurance companies providing whole life insurance plans. It has an impressive 15 add-on riders like Waiver of Premium which pays your insurance premium if you suffer a disabling injury. It has a unique Accidental Death rider. The policy pays double the face amount if the insured dies from an accident. It also has Disability Income rider to supplement your income if you can’t work and Critical Illness rider pays a lump sum if you’re diagnosed with a critical illness.
Northwestern Mutual has excellent whole life policies. We rank this company as number one in terms of quality of products. The company has a wide array of options that allow you to craft an outstanding individual policy. You will be able to build a whole life plan that fits your individual needs.
Northwestern Mutual has three whole life products, including:
Limited Pay Life – a whole life policy that provides lifetime coverage. You pay the premium for a specific period of 10 to 30 years. You stop paying after the limited pay term.
65 Life – You pay premiums until you’re 65 years old with this policy. When you turn 65 you will stop paying premiums, but you are still covered.
90 Life – You pay this policy until you’re 90 years old and you stop paying the premium when you turn 90.
Northwestern Mutual is only one of the many insurance companies you should consider when researching the best whole life insurance plans.
MassMutual (Massachusetts Mutual Life Insurance Company)
MassMutual has been in business since 1851. The company offers whole life, guaranteed life, term life, and universal life insurance.
MassMutual is one of our top picks when it comes to whole life policies. The company offers participating whole life insurance policies with non-direct recognition. It is rated A++ by A.M Best, and J.D. Power rates it better than most for its policy offerings and average ratings for overall satisfaction and price. Insure.com rates it highly in the area of value for the price.
- Death benefit
- Level premiums
- Cash Value Accumulation
Mass Mutual whole life policy offers policy dividends annually and has been giving better dividend rates in recent years. The dividend rate is two percentage point higher than other top insurance companies.
If you’re looking to use your whole life insurance as a supplement for your income, the cash value can help contribute as a source of income. It is one of the top whole life insurance companies for building cash value.
Mass Mutual is a fine company, but it depends on your financial needs and coverage requirements.
Guardian (Guardian Life Insurance Company of America)
Guardian offers a variety of insurance options, including whole life, universal and term life. Guardian offers guaranteed premium, death benefit, cash value accumulations, and potential dividend payments.
There are several riders available including waiver of premium, guaranteed insurability, enhanced accelerated death benefit, and accidental death benefit.
Guardian has a high standard and top-notch financial strength and customer satisfaction ratings. It has an A++ financial strength rating from A.M. Best. Guardian offers a wide range of premium payment models. They have eight different payment structures that allow you to set individual investments goals. For example, you can choose to pay all your premiums in the first ten years and then allow savings to build up.
Cash value accumulates on a tax-deferred basis. If you have to borrow against your insurance policy, the loan will not be counted as income for tax purposes.
You need to be aware that rapid cash value accumulation requires higher premiums. Guardian also has an Index Participation feature, which allows you to link part of your cash value to 500 Index from Standard and Poor’s.
Guardian is a strong contender, but you should consider all of your options when shopping for a whole life policy.
New York Life
New York Life Insurance Company has been providing insurance protection since 1845. It has consistently received the highest financial strength rating from different insurance rating organization including A.M. Best, Moody’s Investor Services, Fitch Ratings, and Standard & Poor.
The company has the financial strength to meet financial obligations and pay claims. It has an above average at overall satisfaction and price according to J.D. Power. New York Life is also a top ranking on Fortune Magazine’s most-admired companies.
New York Life whole life insurance policy has different riders, including Chronic Care Rider which helps you manage costs associated with chronic illness. Living Benefits Rider allows you the option to take an early payout of your death benefits if you become critically ill.
Buying whole life policies also entitle you to receive dividends and accumulate cash value. One beneficial rider for enhanced cash value growth is the option to purchase paid-up addition. The dividend option term rider combines a decreasing term rider with the paid-up additions. Disability waiver of premium and living benefits riders are also available with New York Life.
When it comes to pricing, we have other insurance companies that routinely beat New York Life pricing. A New York Life agent may not have the ability to shop around for the best rates for you, and will only sell you a New York Life Policy.
MetLife (Metropolitan Life Insurance Company)
MetLife has been providing insurance protection since 1864. One of the most recognizable figures associated with MetLife is Snoopy, its canine ambassador (which was dropped in 2016 after 31 years as the MetLife mascot). MetLife has a variety of insurance options including term life, whole life, universal life, and guaranteed acceptance. It has an A+ rating in A.M. Best.
MetLife offers guaranteed level premium, guaranteed death benefit and guaranteed cash value. The policy pays dividends annually starting in the second year of the policy. Dividends can be used to gain interest, pay premiums, purchase additional paid-up insurance and cash to be used however you like.
Several policy riders are available to MetLife including:
Enrichment rider – option to add more insurance coverage and cash value over time as you need it.
Accident death benefit rider – is an additional payment for death as a result of an accident.
Child term rider – is a coverage added for your children
Enhanced care rider – cash value available for a prolonged illness where you can access up to 90% of the policy value.
Flex term rider – includes term life that adds up the whole life policy, offering additional coverage for a specific period.
Disability Waiver of premium rider – the premium is waived for a disability of six months or more.
We miss Snoopy…we bet you do too!
Metlife made a financial decision to give Snoopy a swift boot kick out the door. We’ll help you understand if you should be giving any of your money to Metlife as you consider all of your whole life options.
Transamerica began its operation in 1904, and today it has grown into an insurance powerhouse. Transamerica’s financial strength is A+ “superior” according to A.M. Best. Its ratings are A1 from Moody, AA- from Fitch, and AA- from Standard & Poor.
Transamerica guaranteed whole life insurance death benefit is available for face amounts ranging from $50,000 to $3,000,000. They offer guaranteed premiums and guaranteed death benefit for a lifetime as long as premiums are paid. The policy also provides tax-deferred cash value accumulation that you can borrow against.
It is considered to be excellent life insurance for seniors due to competitive pricing for the elderly. Whole life insurance is available for all ages up to 80. Group whole life insurance is also available through employers as a voluntary benefit in amounts up to $25,000.
Transamerica can be difficult with underwriting at times, so just know that you have other whole life policy options.
Mutual of Omaha (United of Omaha Life Insurance Company)
Mutual of Omaha has been in selling life insurance since 1909. It has earned an A+ rating from A.M. Best due to its financial strength and claims-paying history. J.D Power also gives above-average ratings for overall satisfaction in terms of customer satisfaction and price and billings and payments.
Mutual of Omaha provides a wide variety of products including term life, whole life, universal life, and accidental death.
Mutual of Omaha has three types of whole life policies for adults and two types of children’s whole life insurance such as the following:
Whole Life Guaranteed: Available to adults between 45 and 85 years old. Face amount ranging from $3,000 to $20,000.
Whole Life Guaranteed Direct: Available to adults between 45 and 85 years old. Death benefit ranging from $3,000 to $25,000.
Whole Life Express: Available to adults between the ages of 18 and 85. The face amount is ranging from $5,000 to $50,000.
Children’s Whole Life: Available to kids aged 14 days to 17 years. The death benefit amount ranging from $5,000 to $30,000.
Children’s Whole Life Direct: Available to kids 14 days old to 17-year-old, with benefits ranging from $5,000 to $50,000.
Mutual of Omaha is one of the best burial policy and final expense companies available. If you are healthy, they almost always have the lowest rates.
State Farm has been in business since 1922. It has been number one for customer service in J.D. Power rankings, with respondents ranking State Farm five out of five in every category from price, policy, and service. State Farm is also A++ rated by A.M. Best. The company offers a good selection of insurance policies including term, whole life, universal and mortgage term insurance.
A whole life policy from State Farm has many benefits including the guaranteed death benefit, level premium amounts, lifetime coverage and access to the cash value. Their whole life insurance offers premiums up to age 100. Face amounts are available up to $100,000. The company also has a Limited Pay Life Plans where you can completely pay your life insurance premium amount for the term you choose in 10, 15 or 20 years. You can also earn dividend payments.
State Farm has an app for mobile policy management. The app lets you view your policy details, pay bills, manage coverage, check the company’s FAQ, and check whole life insurance rates online. Policyholders can now manage their accounts and finance anywhere at any time.
State Farm will insure your auto, home, and business. They are insurance “generalists”, not life insurance specialists. When it comes to pricing and expertise, we have other insurance companies that routinely beat State Farm pricing.
Gerber Life has been in business since 1967. It is one of the largest insurance companies that sell insurance directly to consumers. It has an A rating from A.M. Best ranking superior in terms of financial strengths and ability to pay claims. The company offers whole life insurance coverage with no medical exam and no questions asked.
Gerber Life has a comprehensive selection of whole life insurance policies for children. With the Grow Up Plan, you hold the policy until your child becomes 21, at which time he has the option to continue the policy at the standard rates for adults. You can choose from $5,000 to $50,000 face amount with locked-in premiums during the child’s youth.
Gerber guaranteed issue life insurance for adults is also considered burial or final expense insurance. It provided a fixed premium whole life insurance cash value for ages 50 to 80. The face amount ranges from $5,000 to $25,000.
Gerber is a great company but is not usually our first choice for a whole life insurance plan unless you are terribly sick or ill.
Foresters Life Insurance Company has been in business since 1874. It has been in operations in the United States, Canada, and the United Kingdom.
Foresters has received an “A” excellent rating with A.M. Best for 14 consecutive years which is proof that the company has consistent financial stability. It also has an A+ rating with the Better Business Bureau.
Foresters Life offers participating no medical exam whole life insurance policies. You can get up to $400,000 20 years to pay whole life insurance without a medical exam. Because this policy is participating, you may receive dividends.
Foresters Life has a strong history of giving life insurance dividends even in difficult times. When the stock market was down over 30%, Foresters’ dividend was 7.9%.
Foresters may be one of the best whole life insurance plans available!
HOW TO PURCHASE THE BEST WHOLE LIFE INSURANCE PLAN
Let’s make your life easier today!
Purchasing life insurance can be daunting at times when you’re looking for the best whole life insurance plans. That’s especially true when you are considering different types of coverage with more than one life insurance carrier.
Reading through these critical details and conducting some research on your own is the best use of your time. By highlighting the best life insurance plans comparison on the market today, we hope that you minimize your research and we help you find the best whole life company for your needs.
If you are ready to buy a policy from one of the best whole life insurance companies, we can help. We can get whole life insurance rate comparison by shopping different top-rated insurance companies to help you make an informed buying decision.
You can get the information you need by answering the instant final expense quotes form on the left side of your screen. You can call us at (888) 862-9456 if you have any questions regarding whole life insurance.
What kind of burial policies and final expense policies should I avoid?
TV AND MAGAZINE ADVERTISEMENTS – Most burial policies or final expense policies you see advertised on television or in magazines are sold as “the no-brainer way” to shop for this protection.
In reality, most of these policies rely on you having NO BRAIN to purchase them.
Just about everyone is eligible for immediate coverage and better pricing allowed by these heavily advertised policies that cost an arm and leg.
To make a long story short, it is better to shop for burial policies with a specialist in burial insurance, like FuneralFunds.com, than to sign up with a company that spends ba-zillions of dollars each month advertising on television and in magazines.
Increasing Price Policies
Those TV and magazine final expense policies may increase in price every five years or have a two-year waiting period before your benefits kick in! What in tarnation!?!
These policies aren’t all they’re cracked up to be, and you often end up at the short end of the stick by purchasing burial insurance this way.
These tricky television magazine snake oil salesmen lure you in with an attractive rate, only to have the cost of your insurance increase every five years until you cannot afford the premiums, then you must cancel your policy.
What happens after you cancel the policy?
You’ll die and will have wasted all that money because you bought a policy that increases in price as you get older. These policies just don’t cut the mustard for most folks!
Avoid policies that increase in price every year or end at a certain age. You don’t want your family to get hung out to dry when they need this coverage the most.
Why choose Funeral Funds for my burial policy?
Most life insurance agents are fine, respectable people.
There are, however, the classic “snake oil” life insurance agents, who will sell you the easiest and most expensive policy possible.
The guaranteed issue folks claim you don’t even need to talk to an agent (but you will need to wait 2 years for your coverage to begin…even if you’re healthy). Answering a few health questions will often get you immediate coverage and MUCH better rates.
Avoid these people at all costs!
For the rest of the life insurance agents, who are fine respectable people, they are most often generalists.
They deal with all kinds of life insurance policies.
They are Jack of all trades and Masters of none.
They are nice people, but they are not the logical choice if you want the best pricing and a burial insurance policy with no waiting period.
We work with 20+ final expense companies, so we can get you qualified for the best price plan with the intent of getting folks like you immediate coverage when possible.
We have to admit that, for the average burial insurance final expense insurance shopper, all the companies and options will often leave you more confused than a woodpecker in a concrete forest.
How can Funeral Funds help me?
The reality is that inexperienced and less knowledgeable insurance agents will cost you loads of money by selling you overpriced burial and final expense policies.
Getting on affordable burial or final expense policy doesn’t have to cost an arm and a leg.
Our job at Funeral Funds is to be the most knowledgeable burial insurance experts available. By doing so, we can knock it out of the park and get you the most accurate quote and affordable rates.
Once we know more about your age and health history, we can accurately give you burial insurance quotes from the final expense companies that are the best fit for you.
It is always in your best interest to work with an independent brokerage, such as Funeral Funds.
With access to all the best final expense insurance companies, we will help you understand your best options, given your current age, health, and financial situation.