Whole life coverage may be right if you:
- Need coverage that doesn’t require a medical exam or health questions
- Have a tight budget or fixed income and need a premium that won’t increase
- Need coverage for burial, funeral, or other final expenses, or to pay off debts
- Would like to supplement existing insurance coverage
- Want to build cash value and have access to funds in an emergency
What is included in a whole life insurance policy?
Guaranteed coverage that lasts for the rest of your life* with no medical exam
Premiums that are guaranteed not to increase
Potential cash value that grows on a DefinitionTax-deferredRefers to instances in which a taxpayer can delay paying taxes to some future period. ** basis
A set benefit to be paid to your designated beneficiaries at your death
Frequently Asked Questions
Like whole life plans, most term life plans have a fixed premium and fixed death benefit. However, whole life provides benefits for the rest of the insured person’s life, whereas term life only lasts for a specific period of time. In addition, a whole life policy includes cash value, whereas a term life policy only includes the death benefit. On the other hand, term life has a lower premium per dollar of coverage and significantly larger death benefits are available.
Whole life and universal life are both types of permanent life insurance, so they have many characteristics in common. Both whole life and universal life provide a death benefit for the rest of the insured person’s life. The main difference is that whole life has a fixed premium and a fixed benefit, whereas universal life has more flexibility — but that flexibility also comes with more risk, as the premium might increase.
In general, whole life is a highly affordable type of insurance, and the premium will never increase. Your premium takes into account your current age at the time of issue, your gender, and your death benefit amount. The Living Promise plan also takes health and tobacco use into account, but the Guaranteed Plus plan does not.