Whole life insurance is a type of permanent life insurance that covers you for your entire life—not just a set number of years. It also builds cash value over time, providing you with both protection and a financial asset that can be utilized later.
How It Works
Lifetime Coverage:
As long as you pay your premiums, your policy stays active for life. Your loved ones will receive the death benefit whenever you pass away.
Fixed Premiums:
Your monthly cost never increases. This makes long-term budgeting simple.
Cash Value Growth:
A portion of your premium is allocated to a cash value account that earns a guaranteed rate of return. You can borrow from it, withdraw from it, or use it to help pay premiums in the future.
Why People Choose This Option
This kind of plan is often appealing because it offers:
- Guaranteed lifetime protection
- Predictable, never-changing premiums
- Cash value you can access for emergencies or big expenses
- Stable, long-term financial planning
Some policies also pay dividends, which you can use to reduce premiums, grow your cash value faster, or take as cash (not guaranteed).
Is Whole Life Insurance Right for You?
Whole life insurance is a good fit if you want:
- Permanent coverage
- A policy that builds guaranteed cash value
- Predictable premiums
- Long-term financial stability for your family
Whole life insurance does cost more than term life insurance. It’s designed for people who want lifelong protection and a built-in savings component—not just temporary coverage. If you only need short-term coverage, term life may be a better fit.
Life Insurance Questions?
We hope that this information on whole life insurance is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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