You need life insurance if somebody will suffer financially when you die.



What is Whole Life Insurance really?

Whole life insurance, also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate. Interest accrues at a fixed rate and on a tax-deferred basis.

Fixed Premiums 100%
Dividends Options 100%
Cash Value 100%

How Does It Actually Work?

Whole life insurance guarantees payment of a death benefit to beneficiaries in exchange for level, regularly-due premium payments. The policy includes a savings portion, called the “cash value,” alongside the death benefit. In the savings component, interest may accumulate on a tax-deferred basis. Growing cash value is an essential component of whole life insurance.

To build cash value, a policyholder can remit payments more than the scheduled premium (known as paid-up additions or PUA). Policy dividends can also be reinvested into the cash value and earn interest. The cash value offers a living benefit to the policyholder. Over time, the dividends and interest earned on the policy’s cash value will often provide a positive return to investors, growing larger than the total amount of premiums paid into the policy. In essence, it serves as a source of equity.

To access cash reserves, the policyholder requests a withdrawal of funds or a loan. Interest is charged on loans with rates varying per insurer. Also, the owner may withdraw funds tax-free up to the value of total premiums paid. Unpaid loans will reduce the death benefit by the outstanding amount.

Withdrawals and unpaid policy loans reduce the cash value of the policy. Depending on the policy type and the size of its remaining cash value, a withdrawal could moreover chip away at the death benefit or even wipe it out altogether. While some policies are reduced on a dollar-for-dollar basis with each withdrawal, others (such as some traditional whole life policies) may reduce the death benefit by an amount greater than what is withdrawn.

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Frequently Asked Questions

About Whole Life Insurance

How do I know how much coverage my family needs?

Upon our initial discovery process, we will do a thorough look at your overall financial profile to determine the coverage needed. Obviously, it is up to the insured how much they feel they can afford.

How long does Whole Life Insurance last

Whole Life insurance is considered a permanent policy, and unlike Term Insurance, Whole life lasts up to age 100 or 121, depending on the carrier as each carrier utilizes different types of Whole Life policies.

Is there a medical exam required for Whole Life insurance?

Not all cases require a medical exam or blood work. It really depends on the amount of coverage being requested and the risk the carrier is about to take. There are some carriers with no medical policies.

What happens when my policy expires?

Before the policy expires, you are notified of the upcoming expiration. You will have the option to renew the policy or convert to a permanent policy. New premiums are determined at attained age.

Is there any cash value with Whole Life Insurance?

Whole Life insurance does build up cash value. In some cases, an insured can receive annual dividends, too, depending on the carrier. With the cash value, you can borrow against your policy and pay it back to maintain the value.

Can I increase my coverage if needed?

Unfortunately, once a policy is in force, we cannot increase or decrease the face value. If you need more, a secondary policy will be needed.The second policy will be rated at age attained.