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How to Find the Best Whole Life Insurance Rates

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Insurance Quotes 2 Day Team

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

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For most people who know even a little about life insurance, most will agree that it seems like whole life insurance has been around forever. Whole life is the most common type of life insurance and includes the benefits and guarantees that large portions of the insurance marketplace look for and depend on.

Most of our clients use whole life insurance to fund their Infinite Banking Plan.  This is where one will use a whole life insurance policy to finance their lifestyle.  Funded properly, you can build enough cash value in your whole life policy to purchase vehicles, college tuition, homes, and retirement.

Because whole life insurance is guaranteed to last for a lifetime while building cash value for the policyholder at the same time, it is the most expensive life insurance product in terms of monthly premiums. Although the product appears straightforward in its design, it can easily be the most confusing life insurance out there.

The guarantees and benefits that make up whole life insurance are typically what motivate many consumers to purchase this coverage even though it is the most expensive. The three major benefits that every whole life insurance policy contains are:

  • Life Insurance Coverage for a Lifetime – With a whole life insurance policy in place, the policyholder will have coverage if they die at age 75 or at 99. The insurer cannot cancel the policy for any reason other than non-payment.
  • Guaranteed Level Premiums – Once your whole life insurance policy is issued, your periodic premiums are etched in stone. The insurance company cannot increase your premium for any reason, period.
  • Cash Value – All whole life insurance policies will build cash value over time because the policyholder pays in more than the actual cost of life insurance, and the insurance company will pay interest on the cash account that is guaranteed in the contract. Also, if your whole life insurance policy is a participating policy, the insurance company will pay dividends (portions of the company profits) to the policyholder every year. Although dividends are not guaranteed, rarely does a company ever elect not to pay them.
“The guarantees and benefits that make up whole life insurance are typically what motivate many consumers to purchase this coverage even though it is the most expensive kind of life insurance.”

How are Whole Life Insurance Rates Calculated?

Just like term life insurance and universal life insurance, the rates for whole life insurance are based on three things:

  • The Age of the Applicant – The younger you are when you purchase a whole life insurance policy, the lower your premiums will be because the insurance company can collect premiums on your policy longer than they could for someone who is older than you are. Also, since women generally live longer than men, the insurance rates for women are lower than rates for men because the company knows they can collect more premiums over the lifetime of a woman.
  • The Health of the Applicant – Your health and health history are also a solid indicator of how long you are expected to live. When an applicant is very healthy, and there are no indications of an unfavorable family health history, the insurance company will offer preferred rates because of your health. On the other hand, if you have one or more health conditions that could impact how long you will live, the insurance company is likely to offer rates higher than that of a very healthy person. In this case, a simplified issue whole life insurance policy may be the answer.
  • The Amount of the Death Benefit – As with any insurance product, the more life insurance you need, the more you will pay for your insurance policy.

What else can Impact My Whole Life Insurance Rates?

As we mentioned earlier, anything that can affect how long you will live will have an effect on your whole life insurance rates, and that includes things other than health issues.

  • Your Occupation – Certainly, some occupations are considered “dangerous” or “hazardous,” and as such, insurance companies will normally consider your occupation when they establish your whole life insurance rates. For example, first responders like the police, firemen, and emergency medical technicians who must run toward dangerous situations will likely be charged more for life insurance than someone with a non-hazardous occupation.
  • Your Hobbies – If you are involved with extreme sports like mountain climbing, deep-sea diving, car or motorcycle racing, or other extreme sports, you’ll likely be charged more for your life insurance than a person who does not participate in these activities.
  • Your Travel – Applicants who travel to countries considered dangerous because of terrorist activities or countries that have shown to be hostile to U.S. citizens will also pay more for coverage or even decline in some cases.

How Can I Find the Best Whole Life Insurance Rates?

An independent insurance professional should always be your first step in finding the best whole life insurance rates. Agents that are “independent” typically represent all of the top-rated life insurance companies instead of only one or two, like a “captured” or “company” agent.

Company agents are also limited to offering a “cookie-cutter” policy where only selected applicants can qualify for preferred rates. Independent agents, on the other hand, represent many companies, and most of them have what we call “sweet spots.” Sweet spots are certain underwriting scenarios where one insurance company might offer a preferred rate and many others will not. Or one company might offer a policy with a table rating where other insurance companies might decline the application altogether. Some companies offer participating policies, and some do not.

Since an independent agent has access to multiple insurance companies that have multiple insurance products, consumers are far more likely to find the solution that best meets their needs and their budget.

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What are the Best Whole Life Insurance Rates for a $100,000 Policy?

 Here are actual Whole Life Insurance rates for a $100,000 policy for a healthy male and female non-smoker: 

Applicant Age

Male Non-Smoker

Female Non-Smoker

30

$90.39 $79.36
35 $110.60

$95.99

40

$134.31 $114.98
45 $164.41

$143.50

50

$203.53 $175.44
55 $255.50

$223.74

60

$324.71

$279.62

As you can see from this Whole Life Insurance rate chart, the rates for women are less than the rates for men. This is because women typically live longer than men. You will also notice that as your age increases, so do your whole life insurance rates. This means you can never buy life insurance cheaper than you can today. Don’t waste money by putting off a decision while researching. 

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For more information about Whole Life Insurance and how to get the best rates, please start by using our whole life calculator on this page.

Frequently Asked Questions

Why should I buy whole life insurance?

The guarantees and benefits that make up whole life insurance are typically what motivate many consumers to purchase this coverage even though it is the most expensive kind of life insurance. The three major benefits that every whole life insurance policy contains are: life time coverage, guaranteed premium, and cash value.

How can I find the best whole life insurance rates?

An independent insurance professional should always be your first step in finding the best whole life insurance rates. Agents that are “independent” typically represent all of the top-rated life insurance companies instead of only one or two like a “captured” or “company” agent. Ogletree Financial Services 800-712-8519 can help you find the right fit!

How much does whole life insurance cost?

A sample monthly premium for a $100,000 whole life policy on a healthy 40-year old non-smoker would be $134.31 for a male and $114.98 for a female. Your premium would be based on your personal underwriting. An independent life insurance agent can help with your search for affordable whole life insurance.

 

author avatar
Doug Mitchell, CLU Independant Advisor
Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent almost 30 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance and home and auto insurance. Doug is a Top of the Table Million Dollar Round Table member (MDRT).  MDRT is a global, independent association of the world's leading life insurance advisors.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table. He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award. Later in his career with New York Life he was an Executive Council Member. Doug currently serves as President of Ogletree Financial, a managing general agency serving life insurance agents and clients in all parts of the United States. Today, Doug’s main focus is servicing 1000s of policyholders and growing the agency through the reach of  insurancequotes2day.com.