Whole Life Insurance

With Whole Life Insurance, you pay fixed premiums for the life of the policy. In return, the insurer provides a guaranteed death benefit to your beneficiaries when you pass away. A portion of your premium payments goes toward building cash value, which grows at a guaranteed rate set by the insurer. This cash value can be borrowed against or withdrawn (subject to terms).

• Lifelong Coverage: Whole life insurance provides coverage for your entire life, unlike term life insurance, which expires after a certain period.

• Guaranteed Death Benefit: Your beneficiaries will receive a death benefit when you pass away, providing them with financial security.

• Cash Value Growth: The policy accumulates cash value over time, which you can borrow against or withdraw.

• Premium Stability: Your premiums are fixed and will not increase as you age or if your health declines.

• Loan Options: You can take out loans against the cash value, typically at favorable interest rates.

The primary differences between Whole Life Insurance and Term Life Insurance are:

• Term Life Insurance: Provides coverage for a specific period (e.g., 10, 20, or 30 years) and does not accumulate cash value.

• Whole Life Insurance: Provides lifelong coverage with a cash value component that grows over time and can be accessed during your lifetime.

Yes, you can borrow against the cash value of your whole life policy, typically at favorable interest rates. The loan does not require a credit check and can be used for any purpose, such as covering unexpected expenses or supplementing retirement income. However, any unpaid loans or interest will reduce the death benefit.