What is whole life insurance?
One type of permanent life insurance, whole life insurance offers lifetime coverage with a guaranteed rate of return and premiums that remain the same. Whole life insurance also offers a savings component, which allows your policy to build a cash value that lasts to the death.
Whole life policies are a good strategy if you aim for financial certainty. Since whole life insurance can double as a tax protected account, you have the option to borrow against it or leave a financial legacy to your beneficiaries. While term policies are designed to protect against relatively short term expenses, they eventually expire; the whole life insurance is permanent and can provide a guaranteed payment to your loved ones.
What can whole life insurance cover?
Whole life insurance is built to meet your long term financial goals, including:
Funeral and burial expenses
Features of the whole life insurance
Whole life insurance coverage is typically more expensive than term life insurance but offers a variety of important benefits:
Unlike the term policies that can expire after 10 or 20 years, the whole life insurance lasts until the insured disappears, provided that the premiums are paid.
Political growth guaranteed
Whole life insurance can help you save money as the cash value component grows every year. Cash value policies work similarly to a 401k, gaining tax-free growth for policyholders and can help save on retirement. Additionally, the savings account component can increase your financial legacy and potentially pay off your premium payments. If you are struggling to save money, a cash value life insurance policy can be particularly beneficial.
You pay the same amount for your policy every month. Ideally, the payment amount becomes even cheaper over the years and the premium never increases.
Whole life insurance policies generally provide a flat rate and tax free benefit to the beneficiary.
Learn more about whole life insurance
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