Whole Life best fulfills the need for lifetime insurance coverage for policy owners who most desire a predictable premium and, over the years, the opportunity to access a significant asset value via policy loan. As will be described in Chapter 6, “Policies without Premiums,” there is a class of life insurance policies for which the policy owner makes all the premium investment decisions. Several life insurance companies sell a Whole Life hybrid of such policies in which there is a stipulated premium and for which certain guarantees of sufficiency will exist as long as that premium is paid.

Variable Whole Life policies provide certain guarantees for the payment of a significant annual premium, which in turn is directed into investment-oriented subaccounts. Premiums may be suspended, but guarantees will be forfeited. Insurance buyers interested in investment-oriented policies may find greater flexibility in a Variable Universal Life policy. Most forms of permanent life insurance are now available in single and survivorship formats. While the Survivorship Whole Life policies sold predominantly in the 1980s had complicated and sometimes even complicated features to achieve a “second-to-die” death benefit, today’s Survivor Whole Life policies are fairly straightforward; premiums are payable until the second death, and the death benefit is payable only at the second death. All other features of Whole Life apply to its second-to-die cousin .

Second-to-die policies are almost exclusively used to fund estate taxes and other liabilities that occur when the second of two spouses dies with appropriate testamentary and trust provisions. While these policies enjoy more favorable pricing because of the fact that death benefits aren’t paid until the second death, they should not be used when there will be liquidity needs for a surviving spouse. Second-to-die policies can also be used in business situations where the death of one partner or principal can be endured, but not both. Term refers to a term of years, and today’s term policies are generally available for 30-year periods. For each specified duration, the premium will typically be level and guaranteed.