What is Whole Life Insurance?
Whole life insurance offers lifelong protection, compared to term life insurance which provides coverage for a specified period. As the most fundamental form of permanent life insurance, it offers consistency along with some predetermined cash value growth that's guaranteed.
How does Whole Life Insurance Work?
Your premium payments remain fixed over the policy's duration. A portion of it goes towards insurance, including fees, and the coverage for death benefit.
A portion of each premium is set aside to help build your guaranteed cash value.
What are the benefits of Whole Life Insurance?
Fixed premium payments
While whole life insurance is usually more expensive than term life policies, the premium payments are fixed for the life of the policy.
Steady cash value growth
Your whole life insurance policy receives guaranteed cash value growth.
Tax-free payout
Upon your death, the payout your beneficiary receives is typically tax-free and has a steady value throughout the life of the policy.
Customizable policy
You can customize a whole life insurance policy with a variety of optional features for an additional charge.
Does whole life insurance meet your needs?
| Item | Whole Life | Term Life | Universal Life |
|---|---|---|---|
| Access to your money | ✓ | ✓ | |
| Death benefit | ✓ | ✓ | ✓ |
| Designed for low cost | ✓ | ||
| Flexible payments | ✓ | ||
| Market participation | ✓ | ||
| Tax advantages | ✓ | ✓ | ✓ |