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How does whole life insurance work?

by Nathan Zachary

Whole life insurance is for life and can cover both the death and disability of the insured. It has a protection component typical of life insurance, but also the death capital increases year after year. Thanks to the participation in the company’s profits.

Whole life insurance is the only Life Insurance that is always charged, no matter what happens and with which the same is always paid. We teach you everything you need to know about this unique product.

Exclusive product with which you can have the peace of mind that you will always be pay, no matter what happens.

How does whole life insurance work?

With this product you will protect your family by the insured capital for death. But also if you need the capital in the future you could redeem it, for example in retirement.

A fund is accumulate (guarantee plus profit sharing) until the end of the product. Whole life insurance gives you the peace of mind of knowing that you or your family will always be able to use it. Either in case of death or for the ransom.

Features of whole life insurance

Lifetime coverage

There is no limit to whole life insurance coverage.

This product only ends either with the death of the insured or by making the redemption option effective.

In addition, both the death value and the surrender value increase over time thanks to profit sharing, which allows the negative effects of inflation to be correct.

Always pay the same

It is important that you will know from the beginning the fixed fee. That you are going to pay throughout the life of this product. There are no price increases year after year and that is very important. Since this is what happens in normal life insurance.

With set values

Whole life insurance has 3 values ​​that make it even more interesting.

  • Redemption value: it can be redeem whenever desire after the second year.
  • Reduction value: even if we stop paying the premium, we will always keep an amount in this concept, which is also revalue with the participation in profits.
  • Advance payment value: an advance payment can be request from the company.

Participation in the company’s profits allows death and surrender values ​​to increase year after year above guaranteed levels.

Profit sharing

This characteristic must be take into account since it allows to eliminate the effects of inflation so disastrous in long-term products.

Who is it for?

Whole life insurance is aim at those who want to protect their family or have a protection purpose that lasts over time.

This type of protection ensures, like no other product on the market. The protection of the family forever, since it shields capital in the event of death. But it also allows us to create long-term savings for when we might need it, for example, retirement.

It is an ideal product for freelancers, liberal professionals, company managers, directors and intermediate positions.

Usage examples

The self-employed, worried about their current and future debts. Use it to protect their families from it and as a cushion for the precarious pension they will receive.

Young people use it as a piggy bank for the future; sometimes it is the parents or grandparents themselves who initiate said savings. There are people who use it as funeral insurance, since the premium never goes up, it is not loss and it also increases in value over time. People with a dependent in charge use it to know that person under any circumstance will have a capital for their expenses.


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