Whole Life Insurance

Just as the name suggests, a whole life insurance policy provides you with life insurance for your entire life, not just a predetermined time period. With whole life insurance you can generally expect your death benefits and premiums to stay the same as long as you keep your policy. What makes whole life insurance policies different from other life insurance policies is that they are an investment that can benefit you and your loved ones while you are still alive.

Over time whole life insurance policies will increase in cash value. The premiums from your policy are invested by the insurance company with a guaranteed minimum rate of return on your investment. It’s possible that within as little as a few years the policy will pay for itself. You won’t pay taxes on your whole life insurance policy until you withdraw it. If there comes a time when you need a convenient source of cash, whole life insurance policies also offer the option of borrowing against them.