How it works · Whole Life Insurance
Lifetime protection with guaranteed building blocks.
Whole life insurance is permanent coverage designed to last your entire life, as long as premiums are paid. It combines a death benefit with a cash-value account that grows at a rate set by the policy, giving your family long-term certainty.
Coverage lengthLifetime
Cash valueGuaranteed growth
PremiumsTypically fixed
How it works
- Premiums are generally level and will not increase as you age.
- A portion of each premium builds cash value, which grows tax-deferred at a guaranteed rate defined in the policy.
- With some participating policies, the carrier may pay dividends, which are not guaranteed.
- You may be able to borrow against the cash value; outstanding loans and interest reduce the death benefit.
Often a good fit for
- People who want coverage that never expires
- Families planning to leave an inheritance or legacy
- Those wanting predictable, fixed premiums
- Parents supporting a dependent who will need lifelong care
Things to consider
Whole life premiums are significantly higher than term for the same death benefit, and cash value may build slowly in the early years. Surrendering early can mean fees.