What is Whole Life Insurance?

what is whole life life insurance

Whole life insurance, also commonly referred to as permanent life insurance, is a life insurance policy that is good for the entire life of the policyholder, even if they live past 100. There are three major types of whole life insurance, and each has their own unique variations:

  • Traditional Whole Life offers permanent coverage with guaranteed level premiums, death benefits and cash value.
  • Universal Whole Life a flexible type of permanent life insurance that can be customized based on your needs.
  • Variable Universal Life combines a life insurance policy with an investment opportunity.

Whole life insurance policies typically have higher premium rates, but they also come with a cash value component. The cash value of a whole life insurance policy functions as a savings account, and a portion of premium payments grow tax-deferred over time.

After a certain amount of time, stipulated in the policy, the accumulated cash can be used for loans or other purposes while you are

living, or can be an increased death benefit to your beneficiaries. It can also be used to pay premiums to keep the policy in place if you can’t afford them any longer.

The life insurance premiums of a whole life policy will remain the same each year, and as long as you keep up with payments, the policy provides protection for life. While premium payments can be more expensive than term life insurance rates, the premiums remain the same no matter how old you are.

A whole life insurance policy is a good option if:

  • You want or need life insurance for as long as you live.
  • You want to accumulate a savings for later use.

Need to know more about whole life insurance? Visit our Learning Center or FAQ page.

If you’re ready to get started or have questions for our life insurance representatives, fill out the form below for a free life insurance quote today.

Source: www.efinancial.com

Category: Insurance

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