Best Whole Life Insurance Policies in Tennessee 2025

Choosing the Best Life Insurance Company

Before diving in and purchasing life insurance, it is vital to understand exactly what features to look for when comparing the best life insurance companies. There are various types of life insurance that are designed to fit a wide variety of needs. Moreover, some providers offer customizable policies with added provisions known as “riders,” which can add valuable benefits.

Learn more about the top life insurance companies

Types of Life Insurance

If you are scratching your head wondering, “What is life insurance?" Don't worry. It's not as complicated as it sounds. Life insurance ensures that your spouse and children — or any other individuals who rely on your financial support — are covered when you pass away.

There are two main types of life insurance: Whole Life and Term Life. Term life insurance policies provide protection for fixed periods of time. For example, 10-, 20- and 30-year term policies at guaranteed rates. Whole life insurance has higher monthly premiums and covers you for the extent of your life or until age 120, whichever comes first.

What is an Indexed Universal Life Insurance (IUL) policy?

The name is a little cumbersome, but the idea is actually quite simple: rather than choosing between a traditional whole or term life insurance policy, an indexed universal life policy, or IUL, takes a portion of your premium payments toward an annual renewable term life insurance policy, while the rest of the payment gets added to the cash value of the policy (after fees are deducted). This cash value is invested into an equity index account (think the S&P 500 or NASDAQ). By investing in an index fund, an IUL policy allows you to grow your policy’s cash value based on the index of an entire market sector. Monthly or annually (depending on your policy), this cash value is credited with interest based on increases in an equity index. 

An IUL is similar to a regular universal life policy in that the  interest rate of an IUL will be variable, and there is also a minimum interest rate that your IUL policy will always earn, regardless of market performance. Compare and find the top IUL companies that fit your needs and your budget. Because IUL is a form of permanent life insurance, your policy will last until your death, as long as premiums are paid regularly. 

Some of the drawbacks of an IUL policy are that there may be caps on returns, as well as that there are no guarantees on market returns or premium amounts. Thus, an IUL policy is usually recommended for people with large sums to invest up-front, and are looking for tax-free retirement options. 

The benefits of whole life policies are numerous:

• If you pass a health screening, you can purchase as much coverage as you need.
• Purchasing a whole life policy at a young age can mean very cost-effective coverage for your needs over a lifetime.
• They can help you to earn an investment income during your retirement—though costs and risks should still be considered by anyone choosing these policies.

Who will benefit the most from whole life insurance?

• Individuals who are younger and healthy.
• Those who want to purchase a policy that gives them back money during their lifetime.
• Those who are looking for permanent protection.
• Those who wish to leave behind the benefit for specific goals, such as funding an estate plan or covering a loved one’s college education.

Don’t Just Rely on Group or Employer Life Insurance

But what about life insurance provided by an employer? If your company offers free life insurance, then sign up for this free benefit — but don't stop there. Many companies offer their employees a certain amount of insurance for free, but this is usually not enough.

Usually, you can purchase supplemental insurance through your company's benefits, but this insurance does not travel with you if you move jobs — unless your company allows you to pay an expensive premium price to take your policy with you. So, if you want to fill in any gaps in coverage and make sure you can take that coverage with you if you change jobs, an individual term life policy might be worth checking out.

How Much Coverage Do I Need?

It can be daunting to figure this out but evaluate your current financial situation today, and what foreseeable expenses will need to be covered 10 to 20 years down the road. 

When deciding how much coverage to purchase, ask yourself these questions:

How long do I need coverage? If you just got married and are starting a family, you will need at least 20 years of coverage to ensure that your children are provided for until graduation.

How much can I afford? Find the balance between buying enough coverage and having a monthly premium that fits in your budget. The more coverage you purchase, the more expensive your premium (the amount you pay) will be.

What will my family need if I pass away today? If something were to happen to you today, there would be a lot of financial expenses placed on your family's shoulders. 

Whether you choose term or whole life insurance depends on your current and future financial needs. Either one is essential to have, especially if you have loved ones who rely on you for financial stability. 

Underwriting

The underwriting process when applying for term life insurance can be significantly longer and more involved than other types of insurance. This is because companies take greater care—for example, medical examinations—to limit their exposure to risk, due to the level of funding that goes into death benefits. 

Getting the right life insurance policy can give you and your family peace of mind should your circumstances take a turn for the worse. As this is a very important decision that could affect the future of your family, it’s important to compare all the best life insurance companies available and choose the one that best suits your needs.