Features you should look for when shopping for Whole Life Insurance

Guaranteed Level Death Benefit

Whole Life insurance should give a level death benefit to around age 100, which should be guaranteed as long as premiums are paid when due. In addition, the total death benefit may be increased by policy dividends used to purchase paid-up additional life insurance or that have been left to accumulate interest.

Distribution Options for Death Proceeds

The beneficiary has many options for collecting death benefit proceeds. The policy owner may nominate the method of payment during the primary insured's life, or if no such nomination has been made, the beneficiary may make the nomination at the time of death.

Flexible Account Settlement 
A bearing- interest account for proceeds earning a competitive interest rate that allows flexibility in accessing the funds.

Lump Sum
A single payment giving greater ability to meet immediate financial situations.

Settlement Options
Ongoing payments providing an income which may be guaranteed to last for the beneficiary's lifetime.

Combination
For larger flexibility, the complete death benefit may be divided among options.
 

Dividends May Increase Value of Policy 
Some Whole Life policies are participating, meaning that if dividends are declared by the Board of Directors, any dividends paid will be credited to the policy on its anniversary. Dividends, which are not guaranteed in any policy year, may increase the policy’s cash surrender value and the death benefit, depending on the dividend option selected.

Dividend Options You Should Look Out For...

Paid-Up Additions
Used to purchase paid-up additional life insurance. Paid-up additions develop extra cash and loan values and are also able to earn dividends if declared in the future.

Accumulate at Interest
If declared, Dividends are left with the Company to accumulate with interest at a rate set by your life insurance company. This option can increase the total death benefit as well as the complete cash value.

Reduced Premiums
If declared, Dividends are used to lower the premium due. 

Cash
If declared, Dividends, are usually paid to the policy owner by check from the life insurance company.

Guaranteed Level Premiums
Whole Life insurance should provide level premium payments which are guaranteed; premiums will never increase regardless of changes in age or health.