Whole Life Insurance
What is Whole Life Insurance?
Whole life insurance is a type of permanent life insurance that provides lifetime coverage to the policyholder. Unlike term life insurance, which expires after a set period, whole life insurance remains in effect for the insured’s entire life, as long as the premiums are paid.
In addition to providing a death benefit to beneficiaries upon the policyholder's death, whole life insurance also includes a cash value component. This cash value grows over time at a guaranteed rate and can be accessed by the policyholder through loans or withdrawals during their lifetime.
Key characteristics of whole life insurance include:
- Lifetime coverage with guaranteed death benefit
- Fixed premium payments
- Cash value accumulation, which can be used for emergencies, retirement, or other financial needs
Whole life insurance is often chosen by individuals looking for lifelong financial protection, estate planning benefits, and a way to build savings in addition to insurance coverage.