If the whole life insurance policy has nonforfeiture values or cash values then the policy is assured to pay, when the insured event occurs. The whole life insurance policies’ premium is the highest as it ensures for the whole life, no matter when the policy owner pass on. Since one has a whole life policy he has assurance that he will have coverage as long as he lives. The company will guarantee that benefits will be paid to the policy owner’s beneficiaries if a fixed premium which can not be increased during the policy owner’s lifetime as long as he continues to pay the planned amount. Two elements are involved with whole life insurance the mortality charge, which pays for the insurance coverage, and the investment component, which earns interest and claims to act as a savings mechanism. The policy owner has the right to withdraw from the policy during his lifetime. The account of whole life policy is not flexible to split the money among different accounts, to move the money between accounts or to invest in separate accounts such as money market, stock, and bond funds. The face amount is also a fixed amount that can not be changed. The whole life insurance is not only paying for the cost of the insurance, but also paying for the cost of investment. As time passes, the cost of insurance coverage gets higher and the cost of investment gets lower.

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