What is whole life insurance?

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When hearing the word of life insurance must be familiar to your ears. And maybe also you have inadvertently heard about whole life insurance. Then what is whole life insurance?

Maybe you ignore it and do not want to find out so that it passes because of the lack of information obtained, as a result, you are still not interested to try it. For those of you who want to know more, here’s an explanation about the whole life insurance, ranging from the definition to the advantages and disadvantages, as well as the type of protection provided, so it can be a consideration for you to be able to use it well.


What is Whole Life Insurance?

Whole life insurance is a type of insurance that provides protection to customers for life or maximum up to 100 years old. Of course, this could be a consideration whether or not to take a whole life insurance. Therefore, the average age of a person can rarely reach up to 100 years.

Even so, we certainly never know how long it will survive, right? Because it is beyond human control. Therefore, there is no harm in preparing all the possibilities that exist in the future. The whole point of this whole life insurance is to provide coverage to the heirs of participants at the time of this death. So that the families left behind will not experience the difficulties and hassles of financial problems later on.

This is important, especially if there are members of the participating family who need money. Of course, this type of insurance is quite useful to follow. And whole life insurance is considered more appropriate followed by participants aged about 40 years and over. Why? Because this insurance focuses on providing protection in case of risk of death and the insured wants to leave a legacy to his heirs.

In addition, this insurance can be used as education funds, pension funds, and others, from the value of cash that is accumulated and set as a destination initially at the time of submission of this whole life insurance.

Types of  Whole Life Insurance Policies

Straight life policy

With this policy, a premium is paid until the insured person dies or until the age of 100 years. So the cash value will be formed during the policy or equal to the basic sum insured when the participant reaches the age of 100 years. If the participant is still alive to that age, the sum insured will be paid and the insurance protection automatically stops.


Limited payment whole life insurance

This type of policy is intended for people who want to have lifelong protection, but do not want to pay a premium for life. In other words, premiums can be paid within a certain period of time or until a certain age participant. Insurance coverage continues for life. So the premium payment is done in a shorter time.


Participating policy

This policy allows insurance companies to share profits with participants, with an additional premium. So that participant will receive an additional bonus every year. The amount of bonus cannot be guaranteed with certainty because it depends on the profit of the insurance company.


Nonparticipating policy

In this policy, if the insured person dies, the heirs will get basic sum assured with a limited amount. There is no bonus element from the insurance company. Only limited to the premium paid only.


Advantages and Disadvantages of Whole Life Insurance

There are so many life insurance products that offer lifetime or age-appropriate coverage. If you do not want to feel disappointed after making a decision, it is better to check in advance the advantages and disadvantages. Thus, the insurer can benefit maximally from the type of insurance selected. Do not let the decision that has been taken is considered burdensome and does not provide benefits as the initial goal.


  1. Premium fixed
  2. Premiums can be returned
  3. Premiums that can be paid flexibly


  1. Premium price is quite expensive
  2. Compulsory health check (Insurers usually won’t be able to bear the participants with a history of severe illness)


That’s a brief description of life insurance which hopefully adds to our understanding of the types of insurance. It is very important for us to get information about life insurance for life before deciding to buy it. Because, by understanding and understanding, it will be easy for us to decide and choose according to the wishes and needs of life insurance for life.

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