Guide Of $10,000 Whole Life Insurance Policies

This article will explain what whole life insurance is, the cost of different whole life insurance quotes and how $10,000 life insurance policy premiums vary depending on your gender and age.

Whole life insurance

Whole life insurance is a category of life insurance. It is very simple to understand, you pay your premiums as long as you live and you get coverage your entire life. The premium never increases, the policy never expires and it builds cash value. When you pass away, the insurance company pays your beneficiaries the death benefit, usually a tax free lump sum. This death benefit never decreases over the duration of the policy.

Whole life insurance policies have three major components, premium payments, death benefit and cash value.


The premium is cost of your whole life insurance policy. You pay your insurance provider this amount monthly, quarterly, half yearly or yearly. Life insurance companies often charge more for frequent payments. So paying your premiums yearly may be budget friendly in the long run.

Death Benefit

The death benefit is also called the face value. It is the amount your beneficiaries receive from the insurance provider on your death. This amount is dependent on the amount of coverage you opted for. The purpose of the death benefit is to provide a degree of financial security and protection to your family and loved ones, especially those who depended on you for income.

Cash Value

As mentioned before, whole life builds cash value. This cash value accumulates tax deferred in a separate account. This account can serve as a savings account. Cash value comes from your premiums, part of your premiums go to cash value, and the rest goes to the cost of coverage. Even though you have the right to withdraw from this account during your life, you need to remember that you are charged interest from the first day you borrow until you pay the amount back. If you pass away without paying it back, the amount is reduced from the death benefit. This may cause the policy to lapse or leave very little to nothing for your beneficiaries.

$10,000 whole life insurance policies

This section will talk about the different $10,000 life insurance policies available for different adults and children.

When going through the rates for these $10,000 life insurance policies, keep the following in mind.

  • Montana’s state law requires that both men and women pay the same amount for life insurance, therefore the rate for both will be the same for a specific age category.
  • These premium rates will vary depending on the underwriting process of your life insurance company.
  • You may or may not qualify for non-tobacco premium rates, if you use some form of tobacco but don’t smoke cigarettes.

Whole life insurance quotes for children

Purchasing whole life policy for your child can be a pretty good investment. The policy builds cash value. This cash value stays in a separate account and serves as a savings account. You can use this cash value to pay for your children’s expenses like their college tuition, wedding, helping them purchase their first home, etc.

When buying a whole life policy for your children, remember the following:

  • Your child should be at least 15 days old
  • Your child may not qualify for an insurance policy, if they have specific medical conditions
  • Whole life may not be a good idea if your child is going to college within 5 years as enough cash value won’t accumulate in such a short time

Does my health effect my whole life insurance policy?

Yes, your health is a major factor in determining your eligibility for a whole life insurance quote. All burial insurance companies will ask health question, few ask for a medical exam. When answering these health questions, remember that if an insurance provider does not ask about something specifically, it means that they are okay with it.

Burial insurance has the most lenient underwriting process compared to other whole life insurance policies. Underwriting is the process used by insurers to price risk. It determines your eligibility for a whole life insurance quote and in turn the cost of your insurance premiums.

Are $10,000 whole life policies a good idea?

Will buying $10,000 life insurance policies be a good idea, depends on what you need. In most cases it is enough to cover major end of life expenses like funeral and burial costs, cremation costs, payment of loans or debts and it also leaves money for your family and loved ones

What is burial life insurance?

Burial insurance is a category of whole life insurance quote. It is also known as funeral insurance or final expense insurance. The three terms are used interchangeably and mean the same thing. This insurance is designed specifically to cover all your end of life expenses so cannot be used for income replacement or paying for college or buying a home.

Burial insurance has many unique advantages that distinguish is from other insurance policies. Is has the most lenient underwriting as it is designed for people who may have serious medical issues. It is portable, offers small face values, and has an easy application process and quick approvals.

What is an insurance quote?

Insurance companies estimate your rate with them, this estimation is an insurance quotes. The estimate is more accurate if you share more information with the provider. You can request insurance quotes over the phone or email.