What you need to know about Whole life insurance


Whole life insurance: Whole life insurance is a form of permanent life insurance that remains in place as long as you make your payments. A whole life insurance policy is cash value life insurance. There’s a cash value component that accrues over time. You can access your cash value through a withdrawal or loan, or you could surrender the policy and walk away with the cash value (minus any surrender charge).

Benefits of whole life insurance

  • Fixed premiums mean no surprise costs down the road.
  • Builds cash value at a regular rate.
  • Guaranteed death benefit.
  • Life insurance riders, including living benefits, offer extra coverage and features, such as accidental death and dismemberment coverage.

Drawbacks of whole life insurance

  • More expensive than term life insurance.
  • The death benefit will be reduced if you withdraw from the cash value or don’t repay loans you take on the cash value.

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