LIFE INSURANCE
Whole Life Insurance
Whole life insurance is permanent coverage built around contractual guarantees, a level-premium structure in many policies and cash value that grows according to the contract.
How Whole Life Works
Whole life is designed to remain in force for life when required premiums are paid. Policies generally include guaranteed cash values. Some participating policies may also pay dividends, but dividends are not guaranteed.
What to Consider Before You Choose
- Whole life usually costs more than term life for the same initial death benefit.
- Review guaranteed values separately from any non-guaranteed illustration values.
- Understand how loans and withdrawals can reduce policy values and the death benefit.
- Consider whether predictability and guarantees are more important than premium flexibility.
Who Often Considers Whole Life
Whole life can fit someone who has a permanent insurance need and values predictable premiums and contractual guarantees more than maximum flexibility.