2024 Best Whole Life Insurance Plans
last updated on April 3, 2024The best whole life insurance plans are permanent insurance policies that last your entire life. Whole life is the opposite of term life insurance. That covers a specific 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 policy’s life. 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 them to offset premium payments. Some whole life policies also offer the opportunity to earn annual dividends.
FOR EASIER NAVIGATION:
- Some Of The Whole Life Insurance Pros And Cons
- What To Look For In A Whole Life Insurance Company
- Best Whole Life Insurance Plans
- How To Purchase The Best Whole Life Insurance Plan
- What Kind Of Burial Policies And Final Expense Policies Should I Avoid?
- How Can Funeral Funds Help Me?
- Additional Questions & Answers On Best Whole Life Insurance Plans
Some Of The Whole Life Insurance Pros And Cons:
Why whole life insurance is better than term life insurance.
Pros:
- 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
Cons:
- 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
Understanding the whole life insurance policy is important. Before applying for a whole life policy, research whole life insurance rates with multiple top-rated companies to compare the rates. We can help you secure the best whole life insurance for seniors 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 with top financial strength ratings to assure the company will 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 differ depending on their situation. Highly rated carriers provide extra riders you can customize based on your needs. For 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 consistently pay 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
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 & Poors, and Aaa in Moody’s.
Northwestern Mutual Life Insurance also received 4 out of 5 customer satisfaction ratings 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 a Disability Income rider to supplement your income if you can’t work, and a Critical Illness rider pays a lump sum if you’re diagnosed with a critical illness.
Northwestern Mutual whole life insurance has excellent whole life insurance for seniors. We rank this company as number one in terms of the quality of products. The company has many 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 can opt for 10 years to pay for whole life insurance. You stop paying after the limited payment term. Contact us to know your 10-pay life insurance cost.
65 Life – With this policy, you pay premiums until you’re 65. When you turn 65, you will stop paying premiums, but you are still covered.
90 Life – You pay this policy until you’re 90 and 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 regarding 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 overall satisfaction and price ratings. Insure.com rates it highly in the area of value for the price.
MassMutual guarantees:
- Death benefit
- Level premiums
- Cash Value Accumulation
Mass Mutual’s life policy offers dividends annually and has given better dividend rates in recent years. The dividend rate is two percentage points higher than other top insurance companies.
If you’re looking to use your whole life insurance as a supplement for your income, the whole life insurance cash value can help contribute as a source of income. It is a top whole life insurance company for building cash value.
Mass Mutual is a fine company, but it depends on your financial needs and coverage requirements. You can read our Mass Mutual whole life insurance reviews for more information.
Guardian (Guardian Life Insurance Company of America)
Guardian offers a variety of insurance options, including whole life, universal, and term life. Guardian offers guaranteed premiums, death benefits, cash value accumulations, and potential dividend payments.
Several riders are 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 investment 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 the 500 Index from Standard and Poors.
Guardian is a strong contender, but you should consider all of your options when shopping for seniors’ best whole life insurance.
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 various insurance organizations, 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. According to J.D. Power, it has an above-average at overall satisfaction and price. New York Life is also top-ranking among Fortune Magazine’s most admired companies.
New York Life’s 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 benefit 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.
We have other insurance companies that routinely beat New York Life pricing when it comes to pricing. A New York Life agent may not be able to shop around for the best rates 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 (dropped in 2016 after 31 years as the MetLife mascot). MetLife has various insurance options, including term life, whole life, universal life, and guaranteed acceptance. It has an A+ rating in A.M. Best.
MetLife’s life insurance offers a guaranteed level of premium, death benefit, and 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 use cash.
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.
An accidental death benefit rider – is an additional payment for death due to 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 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 give your money to Metlife as you consider all your life options.
Transamerica
Transamerica began its operation in 1904, and today it has grown into an insurance powerhouse. According to A.M. Best, Transamerica’s financial strength is A = “excellent.” Its ratings are A1 from Moody, A+ from Fitch, and A+ 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 death benefits 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 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 of up to $25,000.
Transamerica can sometimes be difficult with underwriting, 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, price, billings, and payments.
Mutual of Omaha provides various 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: Mutual of Omaha whole life insurance is 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 18 and 85. The face amount ranges from $5,000 to $50,000.
Children’s Whole Life: Available to kids aged 14 days to 17 years. The death benefit amount ranged 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 among the best burial policies and final expense companies available. If you are healthy, they almost always have the lowest rates.
State Farm
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.
State Farm whole life insurance has many benefits, including the guaranteed death benefit, level premium amounts, lifetime coverage, and access to the cash value. They also offer State Farm universal life insurance. Their whole life insurance offers premiums up to age 100. Face amounts are available for up to $100,000. The company also has a Limited Pay Life Plan where you can completely pay your life insurance premium 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. Regarding pricing and expertise, we have other insurance companies that routinely beat State Farm pricing. You can also read our State Farm life insurance review.
Gerber Life
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 financial strengths and ability to pay claims. The company offers whole life insurance coverage with no medical exam and no questions asked.
Gerber Life Insurance 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, when 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 whole life insurance unless you are terribly sick or ill.
Foresters Life
Foresters Life Insurance Company has been in business since 1874. It operates in the United States, Canada, and the United Kingdom.
Foresters have received an “A” excellent rating with A.M. Best for 14 consecutive years, proving that the company has consistent financial stability. It also has an A+ rating with the Better Business Bureau.
Foresters Life offers to participate in no medical exam whole life insurance policies. You can get up to $400,000 in 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!
Whole life insurance is the best type of life insurance to have if you want to cover your final expense needs. Purchasing the best whole life insurance plans can be daunting at times when you’re looking for the best whole life insurance plans. That’s especially true when 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 for seniors compared to the market today, we hope you minimize your research and help you find the best whole-life company for your needs. You can also check our whole life insurance calculator to determine how much coverage you need.
If you are ready to buy a policy from one of the best whole life insurance companies, we can help. We can get a cheap 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 or final expense policies you see advertised on television or in magazines are sold as a guaranteed way to shop for this protection.
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 millions 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!
These tricky television magazine 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 have wasted all that money because you bought a price policy as you get older.
WHY CHOOSE FUNERAL FUNDS FOR MY BURIAL POLICY?
Most life insurance agents are fine, respectable people.
There are, however, traditional 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 their lives, insurance agents, who are fine respectable people, are often generalists.
They deal with all kinds of life insurance policies.
They are nice people but are not logical if you want the best pricing and a burial insurance policy with no waiting period.
We work with 20+ final expense companies to get you qualified for the best-priced plan to get folks like you immediate coverage when possible.
All the companies and options will often leave you more confused than the average burial insurance final expense insurance shopper.
How Can Funeral Funds Help Me?
In reality, inexperienced and less knowledgeable insurance agents will cost you loads of money by selling you overpriced burial and final expense policies.
Getting an 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 expert available. We can get you the most accurate quote and affordable rates by doing so.
Once we know more about your age and health history, we can accurately give you quotes for life insurance policies from the final expense companies that best fit you.
Working with an independent brokerage like Funeral Funds is always in your best interest.
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.
Additional Questions & Answers On Best Whole Life Insurance Plans
What does whole life insurance mean?
Whole life insurance is a type of permanent life insurance that offers lifelong coverage and pays out a death benefit to your beneficiaries when you die. The premiums you pay for whole life insurance never go up, and your coverage will never expire as long as you continue to pay your premiums. Whole life insurance also builds cash value over time that you can use for any purpose, such as paying off debt or funding a child’s education.
What are the advantages of whole life insurance?
- It offers lifelong coverage.
- The premiums you pay will never go up.
- It builds cash value over time that you can use for any purpose.
- You can borrow against your policy’s cash value if you need to.
What are the disadvantages of whole life insurance?
- It is generally more expensive than other types of life insurance.
- The cash value growth is slow initially and may not keep pace with inflation.
- If you withdraw, you may have to pay taxes on the cash value.
Which is better whole life or term life insurance?
The type of life insurance you need depends on your circumstances. If you need coverage for a specific period, such as 10 or 20 years, term life insurance may be better. If you need lifelong coverage and are willing to pay higher premiums, whole life insurance may be better.
What are 4 types of whole life policies?
- traditional whole life
- universal life
- indexed universal life
- variable universal life.
Can you cash out your whole life insurance?
Yes, you can cash out whole life insurance, but taxes and penalties may be involved. You should talk to your financial advisor or life insurance agent to see if cashing out is right.
How much does whole life insurance cost?
The cost of whole life insurance depends on factors such as your age, health, and the death benefit you choose. Generally, whole life insurance is more expensive than other types of life insurance.
How long do you pay on whole life insurance?
You pay premiums for whole life insurance until you die or the policy matures, whichever comes first.
Do you pay taxes on a whole life policy?
Generally, you don’t have to pay taxes on the death benefit from a whole life insurance policy. If you withdraw, you may have to pay taxes on the cash value.
What is the difference between whole life and term insurance?
Whole life insurance offers lifelong coverage and pays out a death benefit to your beneficiaries when you die. Term life insurance only covers you for a specific period, such as 10 or 20 years. Whole life insurance also has a cash value that grows over time and can be used for any purpose. Term life insurance does not have cash value.
When should you buy whole life insurance?
You should buy whole life insurance when you need lifelong coverage and are willing to pay higher premiums. Whole life insurance is generally less expensive for young and healthy people.
Can I outlive my whole life insurance policy?
No, you can’t outlive your whole life insurance policy. Your coverage will never expire as long as you continue to pay your premiums.
Can you convert your whole life to term?
Yes, you can convert whole life insurance to term life insurance. However, you may not be able to convert all of your coverage. You should talk to your life insurance agent or financial advisor to see if this is an option for you.
Does whole life build cash value?
Yes, whole life insurance builds cash value over time that you can use for any purpose. The cash value growth is slow at first, but it can be a valuable source of funds in retirement.
What are some whole life insurance riders?
Some whole life insurance riders include the following:
- Accelerated death benefit rider
- Disability income rider
- Long-term care rider
- Waiver of premium rider.
Is whole life insurance permanent?
Yes, whole life insurance is permanent coverage. Your coverage will never expire as long as you continue to pay your premiums.
Is whole life a good idea?
Whole life insurance is a good idea for people who need lifelong coverage and are willing to pay higher premiums. Whole life insurance can be a valuable source of funds in retirement.
Are whole of life policies worth it?
Whole life insurance can be a valuable source of funds in retirement. It can also be used to pay for long-term care expenses. Whole life insurance is generally best for people who are young and healthy.
What happens when a whole life policy is paid up?
When a whole life policy is paid up, the policy will continue to provide coverage for the rest of your life. You will not have to pay any more premiums.
What happens to cash value in whole life policy at death?
The death benefit (which includes the cash value) in a whole-life policy is paid to the beneficiary when the policyholder dies. The beneficiary can use the cash for any purpose.
What is the surrender value of a whole life policy?
The surrender value of a whole life policy is the cash value you would receive if you surrendered the policy. The surrender value will be less than the cash value if you withdraw the money from the policy.
When should you cash out a whole life insurance policy?
You should cash out a whole life insurance policy when you need the money and are willing to surrender the policy. You will usually get a better return on your investment if you keep the policy until you die.
Can the IRS take whole life insurance proceeds from a beneficiary?
No, the IRS cannot take whole life insurance proceeds from a beneficiary. The death benefit is not considered income for tax purposes.
What happens to whole life insurance at age 100?
At age 100, your whole life insurance policy will still be in effect. You will not have to pay any more premiums. The death benefit will be paid to your beneficiary when you die.
What is the average return on cash value for whole life insurance?
The average return on cash value for whole life insurance is 3-4%. The return is not guaranteed and will vary depending on the performance of the underlying investments.
At what age does whole life insurance end?
Your whole life insurance policy will generally extend until you are 121 years old as you continue to pay your premiums.
What is the benefit of whole life insurance?
Some benefits of whole life insurance include the following:
- Lifelong coverage
- Builds cash value over time
- It can be used to pay for long-term care expenses
- It can be a source of funds in retirement.
What are some drawbacks of whole life insurance?
Some drawbacks of whole life insurance include the following:
- Higher premiums than other types of life insurance
- Cash value growth is slow at first
- The death benefit is not income tax-free.
How much does it cost to convert term to whole life?
The cost to convert term to whole life insurance will vary depending on the insurance company. You will typically have to pay a higher premium for whole life insurance than for term life insurance.
Is whole life insurance an asset?
Yes, whole life insurance is an asset. The policy’s cash value can help pay for long-term care expenses or supplement your income in retirement.
What is better whole life or term life?
There is no one-size-fits-all answer to this question. Whole life insurance can be a good choice for people who need lifelong coverage and are willing to pay higher premiums. Term life insurance may be a better choice for younger and healthy people.
When was whole life insurance created?
The first whole life insurance policy was issued in 1710.
What is the best age to buy whole life insurance?
There is no one-size-fits-all answer to this question. Whole life insurance can be a good choice for people who need lifelong coverage and are willing to pay higher premiums.
Can you outlive your whole life insurance policy?
No, you cannot outlive your whole life insurance policy. The policy will remain effective if you continue to pay the premiums.
Do I have to pay taxes on my whole life insurance cash value?
No, you do not have to pay taxes on your whole life insurance cash value. The cash value grows tax-deferred and is only taxed when it is withdrawn.
What are the risks of whole life insurance?
The main risk of whole life insurance is that you need to pay a more expensive premium than you would for other types of life insurance. There is also the risk that the cash value will not grow as fast as you expect it to.
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