One of the key benefits of whole life insurance is having life insurance coverage for your lifetime. Whole life insurance also builds cash value over time, which can help provide extra financial security if needed. You can borrow against the cash value in your policy (8% interest rate applies and outstanding loans will reduce your cash value and death benefit) or if you were to terminate your policy, you would receive the accumulated cash value.

Whole life insurance provides permanent life insurance coverage for your entire life (as long as you pay your monthly premiums). Whole life policies also build cash value over time. By comparison, term life insurance offers protection for only a specified period of time (generally 10, 20 or 30 years) and does not build cash value, but as a result the premiums are lower.

After the initial policy years, each time that you pay your premium, the insurance company sets aside a small amount which builds up over time as the policy’s cash value. The longer you hold the policy, the more cash value the policy builds. If a need arises, and as long as premiums are paid, you could borrow against the available cash value^*, providing a financial safety net. You can turn in the policy, ending your coverage and receiving the available cash value.

^*Policy loan interest rate is 8%. Loans may impact cash value and death benefit.

No, the amount you pay when your coverage starts is the same amount that you’ll pay throughout the life of your Family Plan Whole Life policy. The sooner you apply, the lower your lifetime premium rate, since premiums are based on your age when your policy starts.

The premium (or cost) you pay for whole life insurance depends on a number of factors: how much coverage you get, your age, gender and health, for example. Get a free quote here.