Whole Life Insurance
Permanent coverage with a cash value component.
Typical cost: $100 – $500+ per month
Whole Life Insurance
Whole life insurance provides permanent coverage that lasts your entire lifetime with level premiums and guaranteed cash value growth. It's more expensive than term but serves as both insurance and a conservative savings vehicle.
Cash Value Component
Part of each premium goes toward cash value that grows at a guaranteed rate. You can borrow against this cash value or surrender the policy for its accumulated value. Cash value grows tax-deferred.
What's covered
Guaranteed Death Benefit
Fixed benefit paid to beneficiaries whenever you die.
Level Premiums
Premium never increases for the life of the policy.
Cash Value
Accumulates at a guaranteed rate you can borrow against.
Dividends
Participating policies may pay annual dividends.
Paid-Up Options
Eventually the policy can become paid-up requiring no more premiums.
Tips
- • Only buy whole life if you need permanent, lifelong coverage
- • Cash value growth is slow early on—expect decades to accumulate significant value
- • Consider term plus investing the difference for many situations
- • Whole life makes sense for estate planning and wealth transfer
- • Ensure you can commit to premiums long-term—early surrender is costly
Other life insurance types
Term Life Insurance
Affordable coverage for a specific period of time.
Universal Life Insurance
Flexible permanent coverage with adjustable premiums.
Variable Life Insurance
Permanent coverage with investment options.
Final Expense Insurance
Coverage for funeral costs and end-of-life expenses.
Survivorship Life Insurance
Joint policy covering two lives, paying out after the second death.
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