Whole Life Insurance
Whole life insurance is permanent life insurance designed to last your lifetime as long as premiums are paid. It can provide a death benefit, predictable premiums, and cash value growth over time.
How this coverage works
You pay a level premium for life. The policy pays a death benefit whenever you die, provided it is in force, and a portion of what you pay accumulates as cash value inside the contract.
Cash value takes years to build and belongs to the policy, not to you outright. You may be able to borrow against it, and borrowing reduces the benefit paid to your beneficiaries until it is repaid.
Who this coverage may be good for
- Final expenses and other costs that never go away.
- Legacy planning, where the point is to leave something behind.
- People who want coverage that does not expire on a date.
What to consider before choosing it
- It usually costs more than term life for the same benefit.
- Cash value grows slowly at first and is not a savings account.
- Borrowing against the policy reduces what beneficiaries receive.
- Dividends, where a carrier pays them, are not guaranteed.
Common questions
How is whole life different from term?
Term covers a set number of years and builds nothing. Whole life lasts for life and can build cash value. Term generally costs less for the same benefit. Which fits depends on whether the need has an end date.
Can I access the cash value?
Often, through a loan or a withdrawal, depending on the policy. Both may reduce the death benefit, and an unpaid loan can eventually cause a policy to lapse. It is a feature worth understanding before relying on it.
Are dividends guaranteed?
No. Some carriers pay dividends on participating policies and some do not. Where they are paid, they are not guaranteed and illustrations of them are not predictions.
Coverage availability, benefits, riders, and underwriting requirements vary by carrier, product, state, and individual eligibility. This page is for general educational purposes and is not a guarantee of coverage.