Whole life insurance policy for lifelong protection
A whole life insurance policy covers you for your entire life as long as premiums are paid, with a guaranteed death benefit and a cash value that grows over time.
How whole life insurance works
Premiums are level, the death benefit is guaranteed, and part of each payment builds cash value. You can borrow against that cash value, but loans and unpaid interest reduce the death benefit. Some policies from mutual insurers may pay dividends, which are not guaranteed.
Who whole life is best for
Whole life suits people who want coverage that never expires: leaving an inheritance, covering final expenses, supporting a dependent with lifelong needs or planning an estate. If you only need coverage while raising a family, term life usually costs far less.
Pros, trade-offs and pricing
Pros
- Coverage for life
- Guaranteed premiums and death benefit
- Cash value you can borrow against
Trade-offs
- Higher premiums than term
- Cash value grows slowly in early years
- Loans reduce the death benefit
What affects your price
- Age at purchase
- Health and tobacco use
- Coverage amount
- Dividend and rider options
Frequently asked questions
Is a whole life insurance policy worth it?
It depends on your goals. It can make sense for lifelong needs and estate planning, while many families get more protection per dollar from term. We compare both against your budget.
What is the difference between term and whole life insurance?
Term covers a set period at a lower cost. Whole life covers you for life, costs more and builds cash value.
Can I cash out a whole life policy?
You can surrender it for the cash value or borrow against it, but surrendering ends the coverage and may have tax consequences.
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