What is a Whole Life Insurance Quote?

Autumn Rivers

A whole life insurance quote is a price estimate for insurance that both covers the insured for life and is also combined with an investment fund. Unlike term life insurance, the premium for whole life insurance stays the same throughout the life of the policy. Some of every payment the insured party makes will go toward the death benefit, but a portion also goes toward a cash value account.

A whole life insurance quote is a price estimate for insurance that covers an individual for life, combined with an investment fund.
A whole life insurance quote is a price estimate for insurance that covers an individual for life, combined with an investment fund.

Obtaining a whole life insurance quote is beneficial for people who have trouble saving using traditional methods. The insured does not have to pay taxes on money that accumulates in his fund until he withdraws it, and the cash value can be borrowed against as well. As most people immediately notice upon receiving the life insurance quote, however, the cost of a premium for this type is typically much more than for term life insurance.

There are several types of whole life insurance, and people looking for an insurance quote should at least know the most popular kinds. The traditional type offers a minimum rate of return on the cash value, which is guaranteed. In contrast, interest-sensitive whole life insurance coverage offers a variable rate of return on the cash value, which depends on the condition of the economy. Single-premium is best for those who want to pay for the entire policy upfront instead of making payments.

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Most companies offer a free whole life insurance quote. Interested parties can simply visit a company's site and fill out a form with basic information. As can be expected, health and age are major factors in the price of the insurance quote, as sickly and older people are more likely than most to make claims.

To obtain the most accurate whole life insurance quote, it is crucial to give the most truthful information. In fact, some companies might require a medical exam to be completed before offering an official quote. In such cases, the potential insured party must have his doctor send results of the most recent routine office visit to the insurance company.

Health and medical history are often just the beginning of information needed to obtain an accurate whole life insurance quote. Unhealthy habits, such as smoking, will also be asked about, which can greatly affect the premium price. Questions about height, weight, driving record, and even hobbies might be on the free quote form. The more thorough forms might take some time to fill out, but the resulting quotes will likely be accurate estimates of what the potential insured person will pay.

Some employers offer whole life insurance, with premiums deducted directly from the employee's check. In such cases, the employee's family members can also apply for coverage through the same company. Another benefit to this is that no medical exams are required for policies offered through an employer, which means those with health issues should inquire if their job offers such insurance before obtaining a whole life insurance quote on their own.

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