Think of killing two birds with a single stone and whole-life insurance will pop up. With a whole-life policy, you’re protecting the future of the people close to you and building an investment portfolio at the same time. There are a lot of good things that can come from getting whole life insurance. First, it’s tax-efficient and can easily be used to build up assets for retirement. Secondly, it gives you financial security and cash value. But with the tons of insurance companies offering whole-life coverage, finding the best might be a problem. Nevertheless, you’ll be able to make the right choice with this list of the best whole life insurance companies in the United States.
How Much Is Whole Life Insurance Per Month?
The exact amount you’ll pay monthly for whole life insurance depends on several factors. These factors include your age, gender, health, and hobbies, as well as how much coverage you need. For instance, a healthy 35-year-old adult with no health problems who doesn’t smoke can expect to pay between $408 and $472 per month for a $500,000 whole life insurance policy.
What are the 4 Types of Whole-life Policies?
There are several types of whole-life policies and the following are some of them:
- Whole Life Insurance Participation
- Pure Whole Life Insurance
- Limited-Payment Whole Life Insurance
- Single Premium Whole Life Insurance ·
What Is the Main Disadvantage of Having Whole Life Insurance?
The biggest downside of whole life insurance is that you will most certainly pay greater premiums and get less interest than other types of investments.
Best Whole Life Insurance Companies
The following are some of the best whole life insurance companies in the United States:
#1. Penn Mutual
If you’re on the lookout for affordable whole life insurance companies, then you need to check out Penn Mutual. Penn Mutual’s whole life insurance policy offers those seeking a life insurance plan characterized by little risk and a chance to accumulate cash value. The Guaranteed Whole Life II offered by Penn Mutual is a comprehensive life policy product designed for individuals up to the age of 85. This policy ensures a death benefit that remains in effect until the insured reaches the age of 121.
The financial stability of Penn Mutual and its cost efficiency are some of the features that make it unique. Moreover, these factors enable a greater allocation of funds towards the cash value component. Penn Mutual has demonstrated a high level of proficiency in asset investment, leading to potential enhancements in the growth of cash value and death benefits. It also extends to reducing the total premiums during the policy’s duration.
For buyers under the age of 70, the minimum face amount is $50,000.On the other hand, prospects who are 71 years old and over have the minimum face amount of $100,000. The specific amount is determined based on the individual’s health classification. If you intend to get the Penn Mutual offers, you should consider adding them to their rider.
#2. Guardian Life Insurance
Next on our list of the best whole life insurance companies is Guardian Life Insurance. Individuals seeking long-term whole-life insurance coverage can experience numerous advantages with Guardian Life Insurance. Some of these benefits include more flexibility and cash value. Given its strong performance, Guardian Life’s financial health is particularly noteworthy. Moreover, the whole life insurance policies offered by Guardian Life exhibit a commendable ability to accumulate cash value throughout the initial stages.
Guardian offers a comprehensive whole-life coverage policy that provides policyholders with the flexibility to select payment periods spanning from 10 to 20 years, or terms that are fully paid upon reaching specific ages such as 65, 95, or 99 years old. One of the primary benefits is the presence of a significantly higher level of financial stability. This means that you do not have to worry about Guardian’s ability to pay future claims or about the good increase in cash value during the first few years of a policy compared to other market participants.
The death benefit commences at a minimum amount of $25,000 for individuals within the age range of up to 80 years, without any upper limit imposed on the coverage amount.
#3. Mutual of Omaha
Many whole-life policy providers prefer to provide coverage to those who are young and in good health. This is because of the health challenges that seniors have to face as they advance. In essence, as individuals age, their likelihood of becoming ineligible for whole-life coverage increases. Fortunately, Mutual of Omaha is among the few insurance companies that provide coverage to individuals in their senior years, but at an additional expense. This is the primary reason why it made it to this list of best whole life insurance companies.
Mutual of Omaha provides a guaranteed acceptance whole life insurance policy that covers coverage of up to $25,000 for senior individuals who have health difficulties. The determination of premiums is solely based on three factors: the age of the insured at the time of policy issuance, their gender, and the desired coverage quantity. Although guaranteed-issue whole-life insurance is more expensive compared to medically underwritten whole-life insurance, it offers the advantage of providing ultimate expense coverage without considering an individual’s health status.
#4. Nationwide
The next company on our list of the best whole life insurance companies is Nationwide. Nationwide distinguishes itself with its robust financial performance and adaptable payment alternatives. It also has substantial living benefits and readily accessible insurance feature information on its website. Undoubtedly, the experience of accessing a website and obtaining comprehensive details regarding its offerings is really handy. You’ll agree with me that it’s much better than having to meet with an agent. The company received a high ranking in J.D. Power’s 2022 U.S. Life Insurance Study and holds an A+ (superior) rating as a carrier according to AM Best.
People who are in great health, 50 years old or younger, may qualify for coverage of up to $5 million without the requirement of a medical examination. For those aged 51 to 60, coverage of up to $1 million may be available. These coverage options apply to the “Whole Life 100” and “20-Pay Whole Life” policies. Additionally, these policies offer accelerated death benefit riders for chronic, severe, and terminal illnesses without incurring any additional fees. This implies that in the event of being diagnosed with a chronic, severe, or terminal illness, one can obtain the death benefit in advance. Nationwide does not distribute dividends; yet, the company offers some advantages that render its whole life insurance highly commendable.
#5. MassMutual
MassMutual is a financial services company that was founded in 1851 and is headquartered in Springfield, Massachusetts. They provide a diverse range of life insurance plans, along with supplementary services. These include retirement planning, investment management, and financial wellness guidance about estate planning and college savings. They provide a range of ten distinct categories of whole-life insurance policies. Several of the policies include the accrual of dividends and the augmentation of the death benefit, along with the specific policy in question.
#6. State Farm
State Farm is next on our list of the best whole life insurance companies. Its whole life policy provides consistent premiums and lifelong life insurance coverage, contingent upon the timely payment of payments to maintain the policy’s validity. One notable characteristic that distinguishes it from other whole life insurance companies is its financial stability. This attribute instills a sense of assurance among life insurance purchasers. This is because it signifies the company’s ability to fulfill its commitments over an extended period. Trust me, no one wants to be involved with a company that finds it difficult to pay claims.
Additionally, people who buy whole life insurance can also derive advantages from State Farm’s policy illustrations, which are known for their high reliability, as well as the cash value component that exhibits substantial growth, even during the initial years of the policy. The insurance includes the option of paying a single premium, premiums that are payable until the age of 100, or premiums that are payable for a set number of years.
But you must note that policy loans, despite accumulating interest daily, have the consequence of diminishing the death benefit and cash value through the presence of ongoing policy loans and accrued interest.
#7. New York Life
New York Life, a company established more than 175 years ago, has consistently provided dividends to its policyholders for a period exceeding 160 years. The company’s headquarters are located in New York City. The company provides plans that can be tailored to individual preferences across the United States. One notable aspect of New York Life’s whole life insurance is the provision of a tax-free death payment disbursed to designated beneficiaries upon the policyholder’s demise. To acquire a New York Life policy, it is necessary to engage in a conversation with an agent. The company’s website does not provide users with the option to seek a quote or apply for insurance.
Policyholders can exercise control over premium payments with the Custom Whole Life policy that New York Life offers. According to New York Life, it’s generally observed that shorter premium payment periods are associated with higher premium amounts.
Additionally, individuals have the opportunity to collaborate with their New York Life agent to personalize their policy by incorporating additional provisions known as riders. These riders encompass a range of options, including disability waiver of premium, accidental death benefit, chronic care, and the living benefits option.
Last but not least, New York Life offers whole life insurance with the possibility of earning dividends, though there is no guarantee that you will. According to the company’s official statement, it has consistently distributed dividends on an annual basis since the year 1854.
#8. USAA
The last company on our list of the best whole-life insurance companies is USAA. USAA offers insurance and financial services to individuals affiliated with the United States military, including active duty personnel, reservists, veterans, and their respective families. The company offers term and other life insurance policies that are accessible to individuals in the general population. USAA was initially established as a means for Army officers to obtain insurance coverage for their automobiles. Subsequently, the organization expanded its range of offerings to encompass banking and financial services in addition to its existing insurance products. The whole life insurance policy comes with coverage levels that extend up to $10 million. Individuals are presented with the opportunity to engage in payment arrangements for 20 years, until reaching the age of 65, or for the entirety of the policy’s duration.
At What Age Is Whole Life Insurance Worth It?
Sure, whole life insurance is usually worth the investment for people between the ages of 25 and 50.
How Many Years Do You Pay on a Whole Life Policy?
People who buy whole life insurance typically pay for it in perpetuity (that is, until they die). You have the option of funding the complete policy in 10, 15, or 20 years. However, doing so will significantly increase your monthly premium for those years.
How Is Whole Life Insurance Paid Out?
Policyholders have the option to access the cash value of their insurance policy through two methods: borrowing against the cash value or making a partial cash surrender withdrawal. The final death benefit that your policy provides will decrease as a result of surrender. Alternatively, the cash value can be used to offset monthly premium payments, thus eliminating the need for out-of-pocket expenses.
How Much Whole Life Insurance Do I Need?
According to the majority of insurance firms, it is commonly recommended that a suitable quantum of life insurance coverage should be equivalent to or exceed ten times the individual’s yearly wage. When considering insurance coverage, it is common to use a multiplier based on one’s yearly pay. For example, multiplying an annual salary of $50,000 by 10 would result in a recommended coverage amount of $500,000. It is suggested to augment the coverage by an extra $100,000 per child, in addition to the sum equivalent to ten times the coverage.
How Long Should You Keep a Whole Life Insurance Policy?
Once a policy has been established, your whole life insurance can stay active throughout your lifetime. However, this is contingent upon the consistent payment of premiums.
Is it too late to get whole life insurance at 50?
Not entirely. There’s a saying that states, “It’s better late than never.” However, whole life insurance providers typically implement distinct regulations regarding the age limit for purchasing life insurance. It mostly comes with a high premium payment because of the higher risk involved. Whole life insurance providers typically offer the option to extend coverage for an extended period, frequently up to the age of 85 or even 90.
- WHOLE LIFE INSURANCE: What Is It & How Does It Work
- CHEAPEST LIFE INSURANCE COMPANIES OF 2023(
- BEST CAR INSURANCE IN NEW YORK FOR 2023
- Best Life Insurance Companies in Massachusetts for 2023
References
