What In The Heck Is Whole Life Insurance 

Randall Davey

 If you research whole life insurance on the internet, in .51 seconds you can get over 747,000,000 hits (as of June 3, 2021) and run face-first into a sea of unfamiliar terminology. Consider the jargon: 

  • Straight Life 
  • Ordinary Life 
  • Cash Value 
  • Permanent 
  • Adjustable Life 
  • Universal Life 
  • Variable Life 
  • Variable Universal Life 
  • Traditional Whole Life 
  • Mutually Owned, Overfunded Whole Life 
  • Stock Owned Whole Life 

Hint: Many of these words are not synonyms. Not all 747,000,000 articles are talking about the same animal. Descriptions of Universal Life do not necessarily apply to Ordinary Life, and what you read about Ordinary Life does not necessarily apply to Variable Universal Life. The costs, fees and risks associated with certain types of insurance may not apply to other types of insurance. 

You get the point. It is appropriate for anyone in the market for life insurance to conduct due diligence, but Google may not be your best research buddy. 

For starters, know the name or kind of policy you are considering. “Whole Life” is not sufficient. Searching for Whole Life to learn about a Mutually Owned Overfunded Whole Life product is like Googling “animals” to get the drop on a Bengal tiger. Kind matters. If you want to know about Bengal tigers, Google “Bengal tigers.” (Just for grins, Googling “animals” elicits 24,270,000,000 hits while “tigers” produces 1,430,000,000 results. Search “Bengal tigers,” and there are a mere 9,750,000.) 

A final word of caution. Not everything on the internet is accurate. Consider the source of the article on which you land. While Google is convenient, when it comes to serious research, consider including a credible textbook in your repertoire.

Randall E. Davey, CAP® is a financial advisor with Guide Advisors, Inc. In certain circumstances, he may offer insurance as a sole proprietor or through Guide Advisors, Inc. He resides with his wife, Bonnie in Mesa, Arizona. Randall can be reached at randall.davey@guideadvisors.com or by phone at 425.478.5668. 

Advisory services are offered through Guide Advisors, Inc., a Registered Investment Advisor in the States of Arizona, California, Colorado, Idaho, Kansas, Louisiana, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas and Washington. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the states listed above or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.The information contained in this material has been derived from sources believed to be reliable, but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed 

i Ben G. Baldwin, The New Life Insurance Investment Advisor, McGraw-Hill, 2002. 

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