Protection for the people you love
Whole life insurance: coverage that stays with you for life
Whole life is permanent life insurance. As long as the premiums are paid, it pays a death benefit whenever you pass, and part of every premium goes into cash value that builds over the years.
How the pieces fit
Term or whole life?
Why women choose whole life
- To leave something for children or grandchildren, no matter when the time comes.
- To make sure a spouse or a dependent adult child is cared for.
- To build a cash value they can borrow against in an emergency.
- To cover final expenses and debts so less falls to the family.
Things to know before you apply
- Premiums are usually level, but higher than term life for the same coverage.
- Cash value grows slowly in the early years; surrendering a policy early can return less than you paid in.
- Most policies ask health questions or require an exam, and the answers affect the price.
- Guarantees depend on the claims-paying ability of the insurer.
Whole life questions
How is whole life different from term?
Term life covers a set number of years and builds no cash value, so it usually costs less at first. Whole life is meant to last your entire life and builds cash value, which is why its premiums are higher.
Can I use the cash value?
Yes, through policy loans or withdrawals. Loans accrue interest, and unpaid loans and withdrawals reduce the death benefit. Taking too much can cause the policy to lapse and may create taxes.
What are dividends?
Some whole life policies from mutual insurers may pay dividends, which can buy more coverage, lower premiums or be taken as cash. Dividends are not guaranteed.
Is this the same as my funeral plan?
No. A pre-need policy funds specific funeral arrangements. Whole life pays your beneficiaries, who decide how to use the money. Many families have both. How pre-need plans work.