WHOLE LIFE INSURANCE
Whole Life insurance is a permanent life insurance policy. Its primary foundation is comprised of two guaranteed elements: Guaranteed Rates (Mortality, Interest, Company) and Guaranteed Values (Premium, Death Benefit, Cash Value). As long as premiums are paid, it is guaranteed to provide a death benefit and cash accumulation inside the policy.
Whole Life will offer either non-guaranteed dividends or non-guaranteed interest credits. These are based on how the insurance company performs each year and it is important to note they are not guaranteed and do change.
There are many different whole life product designs, which are usually distinguished by the number of years it will take to pay-up the policy. The most common designs are:
- Level Pay Whole Life (paid-up at maturity)
- 10 Pay Whole Life
- 20 Pay Whole Life
- Paid-up at Age 65 Whole Life
- Single Pay Whole Life
In general, Whole Life insurance is well-suited for:
Those who want reliable, predictable performance in their life insurance policy due to its guaranteed nature and are comfortable with it having the highest initial cost among life insurance products.
Are comfortable with and understand that it is less flexible to premium payment changes than a typical universal life policy, particularly in early years.