Whole Life Insurance

Whole Life Insurance

What is whole life insurance?

A type of permanent life insurance, whole life insurance provides lifelong coverage with a guaranteed rate of return and premiums that stays the same. Whole life insurance also offers a savings component, enabling your policy to build cash value that lasts until you die.

Whole life policies are a good strategy if you’re aiming for financial certainty. Because whole life insurance can double as a tax-sheltered account, you have the option to borrow against it or leave a financial legacy to your beneficiaries. While term policies are designed to protect against relatively short-term expenses, they eventually expire; whole life insurance is permanent and can provide a guaranteed payout to your loved ones.

What can whole life insurance cover?

Whole life insurance is built to serve your long-range financial goals, including:

  • Estate planning
  • Retirement
  • Funeral and burial costs
  • Inheritance funds

Features of whole life insurance

Whole life insurance coverage is typically more expensive than term life insurance but offers a variety of important benefits:

Permanent coverage

Unlike term policies which can expire after 10 or 20 years, whole life insurance lasts until the policyholder passes away — as long as premiums are paid.

Guaranteed policy growth

Whole life insurance can help you save money as the cash value component grows each year. Cash-value policies work similar to a 401k, earning tax-free growth for policyholders, and can assist in saving for retirement. Additionally, the savings account component can increase your financial legacy as well as potentially pay for your premium payments. If you struggle to save money, a cash value life insurance policy can be particularly beneficial.

Level premiums

You pay the same amount for your policy every month. Ideally, the payment amount becomes even more affordable as the years pass and the premium never increases.

Tax-free payouts

Whole life insurance policies typically provide a lump-sum, tax-free benefit to your beneficiary.

Learn more about whole life insurance

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