Whole term life insurance is a modified copy of term life insurance. In whole term life insurance the insured remains under cover for the entire lifetime whereas in term life insurance the insured person enjoys insurance for a limited term. Whole term life insurance provides death benefit just like term life insurance.
The face value and death benefit amount can be selected according to the policy holder’s need. In this type of insurance premiums are fixed and the payment options are also too many like monthly, quarterly, semi-annually and annually. Now, with the payment of premiums, the policyholder gets a cash value and this value grows on a tax deffered system.
In this version of life insurance, the monthly cost is higher than the term life insurance, but gradually, the policyholder here gains equity. Whole term life insurance is desirable because this type of insurance ensures that the beneficiary or the family of the policyholder, after his/her death, will have the financial assistance necessary to live in comfort or to fulfill the basic needs of life.
At the same time anybody will love to have such a policy which is going to ensure the whole life and at the same time collects cash value which can be borrowed against, whenever there is a need.
One should also keep in mind that any borrowed amount, not paid back, would be deducted from the payment to the beneficiary in case you are dead.
One should always remember that his dependents should not feel insecure after his death. No body can compensate death, but there are some insurance plans to guarantee financial security.
Companies providing whole term life insurance:
The Western and Southern Life Insurance Company
John Hancock Life Insurance Company
Tata AIG Life Insurance