Whole life insurance, also known as permanent life insurance, is a simplified policy that locks in premiums and death benefits for a lifetime. Whole life also includes a savings element, called the cash value, which can accrue tax-deferred interest over time.
How Does Whole Life Insurance Work?
Permanent life insurance policies such as whole life offer coverage for your entire life, with guaranteed benefits to your beneficiaries. Unlike term policies, a whole life policy won’t expire and your premium amounts won’t increase as you age.
Permanent life insurance such as whole life includes a savings element known as “cash value”. The cash value that you earn can be borrowed against or withdrawn for future financial needs, such as purchasing a home or paying for college. Whole life is a great solution for meeting long-term financial goals with consistent premiums and guaranteed benefits.
Whole Life Benefits
- Guaranteed death benefits
- Reliable payments
- Cash Value