Whole Life is a type of permanent life insurance designed to provide a guaranteed death benefit and build cash value for your entire life. With fixed premiums that never increase and a conservative, tax-deferred savings component, it serves as a stable, lifelong financial tool often used for estate planning, final expense coverage, or leaving a legacy to beneficiaries.
- What It Is: A type of permanent life insurance that provides coverage for your entire life and includes a savings component (cash value).
- What It Covers:
- Death Benefit: A guaranteed, tax-free payout to your beneficiaries upon your death.
- Cash Value: A savings account within the policy that grows at a fixed rate, tax-deferred. You can borrow against it or withdraw from it.
- Who It’s For: Individuals looking for lifelong coverage, guaranteed premiums, and a conservative savings vehicle.
Key Considerations: Premiums are significantly higher than term life insurance. The rate of return on the cash value is typically modest.