Full Life Insurance: What You Need To Know

Whole life insurance, also known as whole of life assurance, is a type of permanent life insurance that covers you for your entire life. It is a contract between the insured and insurer that guarantees a death benefit will be paid to the policy's beneficiaries when the insured dies, as long as the required premiums are paid. Whole life insurance also has a cash value savings component, which can be borrowed against for expenses such as education, buying a home, or retirement income.

Whole life insurance is permanent and covers you for your entire life

Whole life insurance is a permanent life insurance policy that covers you for your entire life. It is also known as whole of life assurance in the Commonwealth of Nations, or 'straight life' or 'ordinary life'. It is a life insurance policy that remains in force for the insured's entire lifetime, provided that the required premiums are paid.

Whole life insurance is a contract between the insured and insurer that, as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies. The premiums are typically much higher than those of term life insurance, where the premium is fixed only for a limited term.

Whole life insurance belongs to the cash value category of life insurance, which also includes universal life, variable life, and endowment policies. The death benefit of a whole life policy is normally the stated face amount. However, if the policy is "participating", the death benefit will be increased by any accumulated dividend values and/or decreased by any outstanding policy loans. Certain riders, such as Accidental Death benefit, may exist, which would potentially increase the benefit.

Whole life insurance is a versatile financial instrument that helps protect families and businesses from uncertainty while helping them build and enhance wealth. It is a life-long financial asset that has tax benefits that may not be found with other financial instruments.

It combines a death benefit with a cash value savings component

Whole life insurance, or whole of life assurance, is a permanent life insurance policy that combines a death benefit with a cash value savings component. This means that it stays in effect for the insured's entire lifetime, provided that the required premiums are paid.

Whole life insurance policies are a type of permanent life insurance, which means that they cover you for your entire life, unlike term life insurance, which only covers you for a specific period. Because whole life policies are guaranteed to remain in force as long as the required premiums are paid, the premiums are typically much higher than those of term life insurance.

The death benefit of a whole life policy is normally the stated face amount. However, if the policy is "participating", the death benefit will be increased by any accumulated dividend values and/or decreased by any outstanding policy loans. Certain riders, such as Accidental Death Benefit, may exist, which would potentially increase the benefit.

The cash value savings component of whole life insurance is a life-long financial asset. When you pay your premiums, part of the money goes into this savings component, which may grow over time, usually at a guaranteed rate set by the insurance company. You can borrow against this cash value for things like education expenses, buying a home, or even retirement income.

Whole life insurance is a contract between the insured and insurer

Whole life insurance is a life insurance policy that remains in force for the insured's entire lifetime, provided that the required premiums are paid, or until the maturity date. As a life insurance policy, it represents a contract between the insured and insurer that as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies.

Whole life insurance belongs to the cash value category of life insurance, which also includes universal life, variable life, and endowment policies. The death benefit of a whole life policy is normally the stated face amount. However, if the policy is "participating", the death benefit will be increased by any accumulated dividend values and/or decreased by any outstanding policy loans. Certain riders, such as Accidental Death benefit, may exist, which would potentially increase the benefit.

Whole life insurance is more than just life insurance. It’s a versatile financial instrument that helps protect families and businesses from uncertainty while helping them build and enhance wealth. It is, first and foremost, permanent life insurance protection that lasts your entire life. A whole life policy also has a “cash value” component – a life-long financial asset.

The death benefit of a whole life policy is normally the stated face amount

Whole life insurance is a permanent life insurance policy that combines a death benefit with a cash value savings component. It is sometimes called "straight life" or "ordinary life". It is a life insurance policy that is guaranteed to remain in force for the insured's entire lifetime, provided the required premiums are paid.

The death benefit of a whole life policy is an important feature because it provides financial protection for the insured's beneficiaries. It can be used to cover funeral expenses, pay off debts, or provide income for the beneficiaries. The death benefit can also be used to pay estate taxes or other taxes that may be due as a result of the insured's death.

In some cases, the death benefit of a whole life policy may be increased or decreased. For example, if the policy is "participating", the death benefit will be increased by any accumulated dividend values and decreased by any outstanding policy loans. Additionally, certain riders, such as an Accidental Death benefit, may exist, which would potentially increase the benefit.

Whole life insurance is a versatile financial instrument that helps protect families and businesses from uncertainty

Whole life insurance is a contract between the insured and the insurer. As long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies. The death benefit of a whole life policy is normally the stated face amount. However, if the policy is 'participating', the death benefit will be increased by any accumulated dividend values and/or decreased by any outstanding policy loans.

Whole life insurance also has a 'cash value' component. When you pay your premiums, part of the money goes into a savings component known as the cash value. Over time, this cash value may grow, usually at a guaranteed rate set by the insurance company. You can borrow against this cash value for things like education expenses, buying a home, or even retirement income.

Because whole life insurance policies are guaranteed to remain in force as long as the required premiums are paid, the premiums are typically much higher than those of term life insurance where the premium is fixed only for a limited term.

Frequently asked questions