What is Whole Life Insurance?
Your Entire Life
The Cash Value
Whole Life Insurance Quotes & Policy Overview
Whole Life Insurance is a permanent life insurance policy that will cover you for a lifetime, as long as premiums are paid. Premiums are locked for the duration of the policy once approved and cannot increase due to outside factors such as aging or health problems.
Many whole life policies include a cash value benefit, where a portion of the premium paid gets diverted for saving, investing, or borrowing against in the future. Current federal income tax law allows for deferred tax advantages for some insurance policies.
Continue reading to find out if Whole Life Insurance is the right choice for you and your family. If you still have questions, one of our helpful licensed life insurance agents can provide answers.
Why Whole Life Insurance?
Whole Life Insurance is a way to help provide life-long financial protection for your loved ones today while setting aside money for tomorrow.
Whole Life Insurance policies also offer a cash value benefit. The cash value benefit diverts a portion of premiums paid into a dividend-bearing account that grows with time. This money can also be borrowed against, creating future leverage and options such as paying for college tuition, paying for future premiums, or even withdrawing the cash value amount. Interest rates for money borrowed against cash value accounts can be competitive and paid back over varying periods of time.
Guaranteed Issue Whole Life Insurance is a type of Senior Whole Life Insurance that does not require a medical exam or health questionnaire. As long as you meet the age requirements of 50 to 80 years old, you can't be turned down for health reasons.
How Does Whole Life Insurance Work?
- Lifetime life insurance coverage.
- Fixed payments that remain the same, even as you age.
- Accrues cash value, depending on the policy.
- Option to borrow against the cash value.
What is the Difference Between Term Life and Whole Life Insurance?
Term Life Insurance
- Provides coverage for a set period of time, or a "term."
- Flexible coverage amounts and term lengths.
Whole Life Insurance
- Offers lifetime coverage, as long as you stay current on payments.
- Can build cash value.
Read more about the difference between whole life insurance and term life insurance.
How Much Whole Life Insurance Coverage Do I Need?
To choose the best coverage amount, consider how much money your family and loved ones would need — both short and long-term. What immediate expenses would they need to cover if you passed away? And how much money would they need for the future?
If you have a child, you may want that amount to help cover them from diapers to diploma. Or, if you have a spouse, you may want that coverage to help carry them through retirement.
Whole Life Insurance Rates
In general, Whole Life Insurance rates are typically higher than Term Life Insurance due to the additive benefits. The rate of a whole life insurance policy will depend upon several factors, including which type of Whole Life policy you choose, your desired coverage amount, and, in some cases, your age and current health.* Policies consist of fixed-rate payments that can be made on a monthly, quarterly, semi-annual, or annual basis. Rates are locked for life and guaranteed to remain the same as you age.
Looking to get started? AIG Direct offers Whole Life Insurance options like Universal Life Insurance and Guaranteed Issue Whole Life Insurance. To apply and purchase a policy now, visit our DIY Guaranteed Issue Whole Life Insurance platform.
*Coverage is subject to underwriting
Reviews from Customers Who Have Purchased Life Insurance through AIG Direct
Our satisfied customers can tell you more about our life insurance products than any advertising campaign ever could. Read reviews from real-life customers who have purchased whole life insurance policies from AIG Direct.
Hear from Our Customers Who PurchasedLife Insurance through AIG Direct
The representatives are well trained in their field and give the customer the best plan to suit their needs at the best price. They are helpful with making the process understandable and. even help getting everything done over the phone when possible.
Easy way to shop for your insurance needs. The agents service was excellent. He was very informative and professional.
Read more of what our customers have to say and see their Life Insurance Customer Satisfaction Scores.
The endorsements/testimonials presented should not be construed as a recommendation to purchase, or an indication of the value of any product or service. The testimonials are actual AIG Direct customers who are not affiliated with AIG Direct and were not provided compensation.
This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.
The AGL policies referenced offer a limited death benefit in the first two years of the policy. Should death occur in the first two years, a death benefit will be equal to 110% of the premiums paid. In the event of suicide, the death benefit is limited to a refund of premiums only.