Whole Life Insurance is another type of Life Insurance Policy that remains in force for the insureds whole life. It is also a Permanent Life Insurance. This is the type of insurance that is purchased to protect your entire life. It is considered traditional insurance and in most cases, requires premiums to be paid every year into the policy. Some companies may allow you to pay off the policy in a set amount of time (either 10 or 20 years are common). If you can pay your policy of faster than seven years, the policy benefits will no longer afford you the tax advantages of a life insurance contract. Since whole life insurance builds up a cash value over time, this type of insurance may also be used as a savings vehicle.

Whole Life Insuranceis a response to market pressures that were conceived over the idea of Term Life Insurance that only pays a claim upon death within a stated term. Many Term Life policy holders are not happy over the idea that they could be paying premiums for 1030 years and wind up with nothing to show for it. Whole Life Insurance requires higher level of premium payments than Term Life Insurance. It gives off a contract that would offer a cash value which is designed to be a cash reserve that does build up against the known claim death benefit. This kind of policy would also credit interests to the cash value account and upon maturity, would equal the death benefit. Ask an expert about other benefits you can get from Whole Life Insurance type of policy.