Whole Life Insurance Policy

Whole Life Insurance

SMH Insurance works with several top rated Whole Life Insurance companies to provide Virginia residents with affordable life insurance policy rates. MetLife and MassMutual are just a couple examples of insurance companies we represent as an unbiased independent insurance agency. 

What is a Whole Life Insurance Policy

Whole Life Insurance is a contract with premiums that includes insurance and investment components. The insurance component pays a predetermined amount when the insured individual dies. The investment component builds an accumulated cash value the insured individual can borrow against or withdraw. Whole Life is the most basic type of cash value Life Insurance. Dividends, or interest can build up in the policy tax deferred. Just like its name, whole life insurance protects an individual for their entire life. The face amounts payable under a whole life policies typically remain at a constant level throughout the duration of the policy unless the policy has a special provision permitting or causing changes (such as a cost of living rider). The advantages of whole life insurance are it guarantees; guaranteed death benefit; guaranteed cash values and guaranteed level premiums.

Who Needs Whole Life Insurance?

Different types of life insurance are the correct policy for different people. Whole life insurance is indicated for individuals in a variety of situations. These situations include the need to provide dependent family members who need funds after the head of a household dies; to liquidate business debts, mortgages or provide family members with funds to pay down debts and to ensure cash is instantly available to family members. There are a variety of other circumstances that may indicate whole life insurance for individuals.

Whole Life vs. Term Life

The benefits of whole life insurance far outweigh those of term life insurance policies. Whole life policies have a living benefit and an accrual of cash for family members after the insured passes, term life is a temporary insurance. Term life insurance simply provides insurance for the policyholder and offers only a death benefit. Also, while whole life insurance offers coverage for the entire life of the policyholder, term life insurance has a fixed period of time where the premium remains level. Eventually, the premium increases each year to the point it becomes unpayable or the policy simply terminates.


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