Whole life insurance is long term insurance. While you get the term life insurance policy for a certain period of time, whole life insurance is for a lifetime, or at least for as long as you keep on paying the premiums and don’t surrender your policy.

 

When you are buying insurance for long term goals, whole life insurance is definitely the best choice for you. The cost for whole life insurance may be initially more than for the term policy, but in the long run it will become a cheaper option of the two.

 

There are basically two different types of whole life insurance policies available, non-participating and participating.

 

The Non-participating policy has a level premium and fixed face amount for your entire life. It offers the great advantage of fixed costs, so that you can budget, and relatively low premium payments. It does not pay dividends.

 

Participating whole life insurance policy pays dividends that result from favorable investments. Dividends can be paid in cash or used to reduce your premium payments. This can also be used to buy additional insurance to increase the face amount of the policy.

 

Within these two types of whole insurance, there are many types of different plans from where you can choose the best one for your needs.

 

If you want to know that what type of life insurance policies are there available for you and that what they cost, go see the free life insurance quotes >>