A Buyer's Checklist for a Whole Life Policy
By Lesley David Varisce, licensed insurance agent, Clarksville, TN | Updated October 20, 2026
A whole life policy is a long-term contract, often decades long, so the carrier and the specific policy design matter as much as the premium quoted on page one. Before signing, check the dividend history if the policy is participating, the guaranteed cash value table, the loan provisions, and which riders are actually included versus available at extra cost.
Dividend history, if the policy is participating
A participating whole life policy can pay dividends, but dividends are not guaranteed and are declared by the carrier each year based on its own performance. Ask for the carrier's dividend history over the last decade or more, not a single projected year. A carrier that has paid dividends consistently for a long stretch is showing a track record; a single illustrated year is not that.
The guaranteed cash value table, not just the illustration
Every whole life illustration shows a guaranteed column and a non-guaranteed (dividend-assumed) column. The guaranteed column is the only number the carrier is contractually required to deliver. Read that table year by year rather than the headline total, since that is what the policy actually promises if dividends underperform.
Loan provisions
Most whole life policies let you borrow against accumulated cash value, but the loan interest rate, whether it is fixed or variable, and how an outstanding loan reduces the death benefit if unpaid at death all vary by carrier. Ask these questions before you need the answer, not after you have already taken a loan. See how cash value and policy loans actually work for the mechanics.
Riders, included versus add-on
Some riders come bundled into a whole life policy at no extra charge, others cost more, and some are not offered at all by a given carrier. Get a line-item list of what is included in the quoted premium versus what would raise it. See how common riders work before deciding which ones you want.
Les lays out the dividend history, guaranteed table, loan terms and rider list side by side for every whole life carrier he quotes, so the comparison is apples to apples.
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This guide is general information, not advice about your own coverage. Dividend scales, loan terms and rider availability are set by each carrier and are not guaranteed.