What’s Behind the Cost of Whole Life Insurance?
Underwritten by United of Omaha Life Insurance Company
One of the most important parts of planning for the future is ensuring your loved ones will be protected when you’re gone. A good way to give them peace of mind is by enrolling in a life insurance policy now that will provide coverage in the future.
With so many different types of life insurance out there, you may be wondering, what are the differences between policies? And how are insurance rates calculated?
We’re here to help. Let’s walk through one type of life insurance, guaranteed whole life and learn what’s behind its cost.
In this article:
Understanding guaranteed whole life insuranceHow is my quote determined?Whole life insurance average costWhole life insurance frequently asked questionsWhat is guaranteed whole life insurance?
Guaranteed whole life insurance is permanent life insurance. This means you’ll have coverage for the rest of your life. Unlike term life insurance, it doesn’t have an expiration date.
Your beneficiaries can use your benefits to pay for your final expenses, including funerals and remaining debts. Or your beneficiaries can use funds however they want, such as making a down payment for a car or paying bills. Check out these seven life events where life insurance can help.
Understanding guaranteed whole life insurance
You can enroll in guaranteed whole life insurance if you’re between the ages of 45-85 (in New York, 50-75). There are many benefits to having a guaranteed whole life insurance policy. Here are some coverage details.
Receive coverage from $2,000 to $25,000.
Use this coverage for end-of-life expenses, including a funeral, which depending on your needs, expenses can range from a few thousand dollars to over $9,000.1
Coverage that lasts the rest of your life.
Your coverage will never expire as long as you pay your premiums on time. Your premiums and benefits will always remain the same.
No medical exam required to enroll.
Our policy won’t require you to step on the scale or visit the doctor’s office. You’ll be accepted regardless of your health.
Here are some additional benefits:
- Guaranteed premiums that never increase. What you pay now is what you’ll pay for the rest of your life. You’ll be able to budget your affordable premium into your monthly expenses.
- Potential cash value that grows on a tax-deferred basis. Each time you pay your premium, part of that payment goes to the cash value. This cash value builds over time through fixed interest rates — like a savings account. You can access your cash value if needed at a 5.66% interest rate; however, withdrawal fees may apply. If you choose to use the cash value, your graded death benefit will be decreased should you not pay the amount borrowed back in full.
- A set benefit to be paid to your designated beneficiaries after your death. You’ll be able to inform your loved ones of the benefit amount they’ll receive, so they can be prepared.
How is my quote determined?
We all have different backgrounds, needs and desires. So, it makes sense that life insurance premiums, or the monthly rate you pay, vary person to person.
To find out how much guaranteed whole life insurance will cost for you, request a quote. Your quote will be calculated by:
Your current age at the time of issue
Your gender
Your death benefit amount
That’s it! We like keeping it simple. Unlike some life insurance policies, you don’t need to worry about your health or lifestyle factoring into your quote.
Since your age is a factor in your quote, you’ll want to apply early. Policy rates increase each birthday. Plus, the sooner you enroll, the sooner you’ll have some peace of mind knowing you’re covered with a rate locked in for life.
Free whole life insurance quote
Now that you have an idea of how guaranteed whole life insurance is calculated, let’s see how much it will cost for you.
Input your age, gender and death benefit amount in this free whole life insurance quote to get started.
Whole life insurance average cost
If you’re not quite sure when you’ll enroll or how much coverage you’ll need, check out these average whole life insurance costs. We’ve broken it down so you can see pricing for each age from 45 to 85, along with coverage amounts in $1,000 increments.
The best part? What you see is what you get. When you’re quoted life insurance, you’ll know the exact cost you’ll pay each month. You don’t need to worry about any hidden fees, as everything is included in your quoted rate. The quote you receive is your specific premium amount, valid until your next birthday.
Whole life insurance costs by age
Find your age on this informational chart to get an idea of what your premium will be for guaranteed whole life insurance. Keep in mind, premiums increase with age — so apply now for your best rate.
Monthly payment for $10,000 coverage
| Age | Female | Male |
|---|---|---|
| 50 years old | $30.40 | $40.20 |
| 60 years old | $42.70 | $56.90 |
| 70 years old | $63.90 | $86.70 |
| 80 years old | $126.90 | $157.10 |
What should my final expenses include?
It can be challenging to know how much coverage you’ll need. The median cost of a traditional funeral ranges from a few thousand dollars to over $9,000, according to a 2023 study1. So, before deciding your coverage amount, think about average funeral costs , as well as your personal final wishes.
Use this final expense calculator to estimate the correct amount of coverage for you.
Whole life insurance frequently asked questions
How long am I paying for whole life insurance?
You’ll continue to pay your premium throughout your lifetime.* You pay a fixed premium for the life of the policy. This premium rate is locked in when you purchase your policy.
At what age can I enroll in whole life insurance?
You can enroll between the ages of 45-85. For New York customers, you can enroll between 50-75.
Can I cash out a whole life insurance policy before death?
Yes. You can use the cash value of your policy, which builds over time as you pay your premium. This cash value can be accessed at 5.66% interest rate. If you choose to use the cash value, your graded death benefit will be decreased, less the amount borrowed.
How can I use the value of my life insurance while I’m still living?
Access the cash value of your policy for emergency expenses, to pay your premiums or supplement your retirement portfolio.
There’s a lot to think about when it comes to choosing the best life insurance for you and your loved ones. Take the time now to review the types of life insurance and think about what all should be covered in your final expenses. It can be difficult to think about the end of your life, but planning for your future now will give you the peace of mind knowing you’ve protected your loved ones when the day comes.