Whole life insurance is the most basic form of permanent life
insurance. It provides a guaranteed death benefit, provided payment
requirements are met, with tax-deferred cash value. Your regular
payments (or premiums) are set at the time your policy is issued and
will never increase. Interest is paid at a fixed rate and accumulates
tax-deferred. It’s that simple.
Key Benefits of a Whole Life Insurance Policy
- Guaranteed death benefit1
- Level premiums that will not increase as you grow older
- Cash value that earns a guaranteed fixed rate of interest1 and grows tax-deferred
- Option to pay additional premiums to increase your policy’s cash value
- Access to cash value through tax-advantaged loans2
How Does a Whole Life Insurance Policy Work?
- You pay regular premiums.
- Premium charges are deducted from your premium.
- The remaining premium is applied to your account value.
- Interest is credited to your account value at a fixed rate and accumulates tax-deferred.
- Monthly insurance costs are deducted monthly from the account value.
- If you cancel (or “surrender”) the policy during your lifetime, you’ll receive the cash value minus any outstanding loans or indebtedness. Surrender charges may apply.
- The death benefit – minus any outstanding policy loans and interest due – is paid to your beneficiaries at death.
If you have a Health Insurance, you can avoid an illness and protect your money from spending for medical cost. It is true that you need to spend money for proper health coverage. But it will not cost you more. You need to spend for large medical bills for high healthcare costs and unpredictable medical needs.
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