Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Written by Jeffrey Manola
Founder & Licensed Agent Jeffrey Manola

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Feb 15, 2022

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It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Facts You Should Know

  • Whole life insurance provides more benefits than term life insurance
  • Your whole life insurance policy is more expensive than term life insurance
  • The cash account in whole life insurance builds interest over time

Did you know whole life insurance could be used as an alternative retirement income? Whole life insurance is often overlooked, but you should consider it if you have a flexible budget.

What is whole life insurance? And is life insurance worth it? Don’t worry – we’re here to help.

Our article explains why you should get whole life insurance, why whole life insurance is one of the best types of policies, and what factors determine whole life insurance quotes.

Continue reading to learn why you should buy whole life insurance. If you’re ready to compare multiple insurance companies near you, enter your ZIP code in the free comparison tool above.

Why should you buy whole life insurance?

Whole life insurance policies are more expensive than term life insurance policies. However, whole life insurance provides benefits that compete with retirement savings.

Here are five reasons why you should buy a whole life insurance policy:

  • Whole life insurance supplements a family’s income
  • You can use whole life insurance to build interests on a savings account
  • Life insurance riders can expand whole life insurance coverage
  • Whole life insurance can protect assets
  • You can use your whole life insurance account to pay for future premiums

Whole life insurance doesn’t expire, and it lasts your entire life. Adding life insurance riders to your whole life insurance policy extends coverage even further.

For instance, a spouse rider can provide life insurance coverage if a spouse passes away suddenly. You can even get a rider for your children, whether you’re a parent or legal guardian.

How does whole life insurance work?

Whole life insurance is a permanent life insurance policy that provides life insurance coverage and a savings account. As you make payments each month, a part of your monthly rates goes to life insurance, and the other part goes to an accumulated cash value.

Who should I choose as beneficiaries?

Your beneficiaries can be anyone. You can choose your family, close friends, and even a business partner.

Some policyholders choose charities or nonprofit organizations as a beneficiary. Be sure to include the full name and Social Security Number of the person(s) you want to inherit your death benefits.

And you can change your mind at any time. Make sure your whole life insurance policy has revocable beneficiaries if you want to change beneficiaries in the future.

Can I borrow money from a whole life insurance account?

Yes, you can. One of the many benefits of whole life insurance is the ability to borrow money against your death benefits and accumulated cash value.

You’ll have your entire life to pay off the debt, but if you pass away before the loan interest is paid off, it’ll be subtracted from the beneficiaries’ death benefits.

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How much are whole life insurance rates?

Multiple factors determine whether affordable whole life insurance is available to you. Although it’s difficult to pinpoint the exact cost of whole life insurance, we researched whole life insurance estimates and located the average monthly rates.

Let’s examine the results in the table below.

Average Whole Life Insurance Rates by Age and Tobacco Use
Policyholder Age & Tobacco UseAverage Monthly Whole Rates: FemaleAverage Monthly Whole Rates: Male
25-Year-Old Non-Smoker$85$94
35-Year-Old Non-Smoker$113$128
45-Year-Old Non-Smoker$243$191
55-Year-Old Non-Smoker$422$295
65-Year-Old Non-Smoker$204$528
Average Annual Rates for Non-Smokers$204$247
25-Year-Old Smoker$107$116
35-Year-Old Smoker$146$157
45-Year-Old Smoker$206$224
55-Year-Old Smoker$321$350
65-Year-Old Smoker$204$600
Average Annual Rates for Smokers$253$289
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Whole life insurance quotes are determined by age, gender, health, family health history, policy limit (death benefits), riders, smoking habit, hobbies, criminal history, and driving record. Therefore, your whole life insurance rates will vary when you shop around at various companies.

As you get older, whole life insurance becomes more expensive. And any chronic or critical health in your family’s health history could be a significant factor when determining whole life insurance costs.

Is whole life insurance worth it?

It depends on what you want to do with your whole life insurance policy. If you’re just looking for life insurance coverage, it’s best to buy a term life insurance policy. But if you want more financial perks, get a whole life insurance policy.

Is whole life insurance better than retirement?

No, it isn’t. Both products provide financial solutions that benefit you in the future. If you pass away unexpectedly, it provides financial reassurance for your beneficiaries. Retirement (such as 401K, Roth IRA, etc.) can be a lifelong investment. We recommend that you invest in both products.

What’s the difference between whole life insurance and universal life insurance?

Whole life and universal life insurance are both permanent life insurance policies, but universal life insurance provides more flexibility with monthly payments. With whole life insurance, you can use a portion of your cash value to make payments to your life insurance policy.

Universal life insurance is also known as adjustable life insurance.

Universal life insurance allows you to change how much you pay per month. In other words, universal life insurance policies enable you to adjust your monthly payments. In addition to adjustable payments, you’ll have an option to make investments.

What are the best companies for whole life insurance?

Finding a good life insurance company that provides reliable whole life insurance could be challenging. Investments are important to your finances now and in the future. So, you should shop around until you locate the right company.

If you’re not sure where to find reliable life insurance coverage, you should start with the best life insurance companies in the United States.

Let’s look at the top life insurance companies and see which is best for you.

Top 20 Whole Life Insurance Companies by Market Share
CompaniesDirect Written PremiumMarket Share
Northwestern Mutual$10,517,115,4526.42%
Metropolitan Group$9,821,445,9536.00%
New York Life$9,925,848,3005.68%
Prudential$9,128,805,0605.57%
Lincoln National$8,769,303,7745.36%
MassMutual$6,854,713,0574.19%
Aegon$4,809,856,6502.94%
John Hancock$4,640,905,0172.83%
State Farm$4,633,004,9632.83%
Minnesota Mutual Group$4,422,100,0282.70%
Guardian Life$4,033,541,4012.46%
Pacific Life$3,755,606,2132.29%
Nationwide$3,364,808,1812.05%
AIG$3,336,397,4532.04%
AXA Equitable$3,051,945,8491.86%
Voya Financial$2,526,828,2681.54%
Brighthouse Financial$2,519,733,1161.54%
Protective Life$2,403,640,8251.47%
Primerica$2,375,786,1901.45%
Sammons Enterprises$2,321,529,7221.42%
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Direct premiums are another way to show how much an insurance company earns, and market share shows how much an insurance company contributes to the life insurance industry.

Northwestern Mutual, Metropolitan, and New York Life are the top-earning life insurance companies in the nation. Another fun fact is that New York Life works with government life insurance programs such as the Federal Government Employees’ Group Life Insurance (FEGLI).

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What happens when I cancel a whole life insurance policy?

If you cancel your whole life insurance policy, you will lose your life insurance coverage. You won’t get a refund, but you can receive the cash surrender value.

A cash surrender value (or surrender cash value) is the amount of money you receive after a life insurance company subtracts fees from your accumulated cash value.

Therefore, you won’t get the total balance from your life insurance company if you withdraw the money you’ve accumulated in your whole life insurance account. If you’re sure that you want to keep life insurance coverage, use your savings account to buy another life insurance policy.

Whole Life Insurance: What are the pros and cons?

Before we wrap up this article, let’s look at the benefits and flaws of whole life insurance. We’ll start with the pros and finish the cons.

  • Advantages
    • Your death benefits go to your beneficiaries
    • Whole life insurance doesn’t expire
    • You can borrow from life insurance savings
    • The life insurance account builds interest
    • Your whole life insurance counts toward your financial portfolio
  • Disadvantages
    • Whole life insurance is more expensive
    • Loans can affect your death benefits
    • You need a special rider to send your life insurance savings to beneficiaries
    • More complicated rules than term life insurance
    • You can’t use your accumulated value right away

Whole life insurance pros and cons are balanced, which is great for anyone making an investment. Advantages and disadvantages show a realistic view of what you could see with whole life insurance.

Why Should You Buy Whole Life Insurance: The Bottom Line

We recommend whole life insurance for anyone who’s investing in supplemental future income. A flexible and abundant budget is perfect for whole life insurance.

However, it doesn’t mean you shouldn’t shop for affordable life insurance coverage. Whole life insurance rates increase as you get older. So, you should shop around to get the best deal.

Now that you know why you should buy whole life insurance, use our free online quote tool to compare multiple insurance companies in your area.

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Frequently Asked Questions: Why Should You Buy Whole Life Insurance?

Do you have more questions about whole life insurance? Let’s review answers to frequently asked questions to learn more.

#1 – Where can I find cheap whole life insurance?

Getting affordable whole life insurance requires you to shop around with various companies until you find a company that provides cheap rates.

#2 – What’s the difference between whole life and term life insurance?

Whole life insurance lasts your entire life and provides a savings account that accumulates, but term life insurance lasts for a few years without the benefits of an accumulated cash value.

#3 – Why do people choose whole life insurance?

Whole life insurance has more perks than term life insurance. Combining whole life insurance with riders can expand life insurance coverage into long-term care and retirement-like investing.