Whole life insurance, also known as permanent life insurance, is a type of life insurance that provides coverage for the entire lifetime of the policyholder. It combines death benefit protection with a savings component known as the cash value.
Whole life insurance policies have fixed premiums that do not increase over time, and the death benefit is guaranteed to remain in place as long as the premiums are paid. The cash value component of a whole-life policy accumulates over time and can be accessed by the policyholder through policy loans or withdrawals.
Some specific features of whole life insurance include:
- Death benefit: This is the amount of money that is paid to the policy’s beneficiaries upon the policyholder’s death.
- Cash value: This is the savings component of a whole life policy, which accumulates over time and can be accessed by the policyholder through policy loans or withdrawals.
- Premiums: These are the payments made by the policyholder to keep the policy in force. Whole-life premiums are typically higher than term insurance premiums but do not increase over time.
Whole life insurance is a good choice for individuals who want long-term protection for their loved ones and a way to save for the future. It’s vital for individuals to carefully consider their insurance needs and choose a policy that meets their needs and budget. A reputable insurance broker or agent can help individuals determine the coverage they need and find a policy that meets their needs and budget.