Best Whole Life Insurance Companies You Need To Know 2023

Knowing the Best Whole Life Insuurance Companies will enable you discover that whole Life Insurance is an attractive insurance policy, if you’re finding built-in guarantees, and want to gather satisfying cash value with minimal risk.

Once you have a whole life insurance policy, you have a guarantee that your premiums would not change, the death benefit won’t change and there wil be a reliable cash value growth.

To assist you find the best whole life insurance companies, we’ve assimilated life insurers according to key metrics over time for thier whole life insurance policies.

Top Best Whole Life Insurance Companies

Here’s our choice and top-rated for the best whole life insurance companies:

See more about whole life insurance policy, how much it costs, factors that can affect it, how much of it you need, and alternatives to whole life insurance as you scheme through this article.

What is Whole Life Insurance Policy

Before now you must have heard about whole life insurance and wonder what it’s all about. The next paragraph below will expalin better of what a whole life insurance is all about.

Whole Life insurance is a type of permanent life insurance designed for people with low risk tolerance, and who want lifelong coverage with guaranteed premiums, death benefits and cash value growth. Whole life insurance seems to be one of the oldest forms of life insurance.

Meanwhile, for most of the 1900s, it was the most common form of life insurance in the U.S. Till today, it continues to be popular and presents about 33% of total life insurance premiums.

How do you think whole life insurance work? Find out in the following section.

How Does Whole Life Insurance Work?

A whole life insurance policy remains active for the rest of your life as long as you pay the premiums. Before getting a whole life insurance policy, get to understand its cash value, living benefits, death benefits, and dividends.

Whole Life Insurance Cash Value

Whenever you make premium payments for a whole life insurance policy, part of the premiums are put into cash value account. The remaining goes to paying internal policy expenses.

The cash value account grows tax-deferred, depending on a guaranteed rate of return that is basically low comapred to other types of permanent life insurance.

Due to its low growth, it can take up to awhile before the cash value grows over what you’ve paid in premiums. You can decide to tap from your cash value by making a withdrawal, taking a life insurance policy loan, or surrendering the policy.

Once you withdraw, your death benefit that’s meant for your beneficiaries will reduce. And same with the policy loan if it’s not paid back.

Whole Life Insurance Living Benefit

Generally, Whole life insurance offers living benefits. Here, living benefits allows you to access money in your own death benefits while you’re still living under certain circumstances.

The most common living benefits allows you access your death benefits money for long-term chronic illness or terminal illness. Ensure than you ask your insurance agent about what living benefits are availble before you purchase a policy.

Whole Life Insurance Death Benefits

Once you  buy a whole life policy, you’ll list a life insurance beneficiary who will receive the death benefits payout once you die. Also, you should list contigent benefitciaries who will recieve the payout if your primary beneficiaries are already deceased.

It’s vital to be aware that whole life insurance has a guaranteed death benefit amount, but the amount does not include the cash value in the policy, regardless of the amount you’ve accumulated.

Some policies provides a rider that will add the cash value to the face value for the death benefit, but insist on paying more in the future.

Whole Life Insurance Dividends

Dividends are common with whole life insurance policies. “Participating” whole life insurance policies pay a dividend and are provided by Mutual insurance companies.

While “Non-participating” whole life insurance policies don’t pay a dividend are are given by stock  insurance companies. Basically, you have a choice of how to use your dividends. Common options include:

  • Taking the dividend as cash
  • Putting it toward your life insurance premiums
  • Purchasing paid-up additions

Buying paid-up additions will increase the cash value and death benefit. Once you have a policy loan out, dividends are sued to pay loan insterest and to pay back the loan. Insurance companies can also offer other dividend options.

Cost of Whole Life Insurance

The average cost of whole life insurance is $180 monthly for a $250,000 policy for a 30-year old female, and $201 monthly for a 30-year-old male.

Average Monthly Cost for a $250,000 Whole Life Insurance Policy

Age Female Male
Age 30 $180 $201
Age 40 $262 $293
Age 50 $387 $445


Average Monthly Cost for a $500,000 Whole life Insurance Policy

The average cost of whole life insurance is $352 a month for a $500,000 policy for a 30-year-old female, and $394 a month for a 30-year-old male.

Age Female Male
Age 30 $352 $394
Age 40 $506 $564
Age 50 $752 $847


If you pay yearly instead of monthly for a life insurance policy, you can recieve a discount.

Factors that Affect the Cost of Whole Life Insurance

Any coverage amount you choose will have a large impact on your premium. Other factors that basically affect whole life insurance premiums include the following:

  • Age and gender.
  • Height and weight.
  • Past and current health conditions.
  • The health history of your parents and siblings.
  • Nicotine and marijuana use, including nicotine patches and gum.
  • Substance abuse.
  • Credit.
  • Criminal history (such as felonies).
  • Driving record (especially DUI convictions and moving violations, such as speeding tickets).
  • Dangerous hobbies and activities (such as piloting planes).
  • Life insurance riders you add when you buy the policy.

How Much Whole Life Insurance Do I Need?

It’s important to buy enough whole life insurance coverge, however, there’s a lot of things to consider while deciding the amoun that’ll be enough. Life Insurance Calculator can also assist you make easy decision.

A general rule of thumb for determining how much life insurance you need is to add up your financial obligations that need to be covered by life insurance (such as a mortgage), and then subtract your assets.

Moreover, speaking with a finacial advisor is a good way to determine your life insurance needs within the broader pciture of your presonal finances.

Alternatives to Whole Life Insurane Policy

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