A whole life policy covers you for your entire life. This differs from a term policy since that only lasts for a specific time period. Whole life insurance also builds cash value, which is a return on a portion of your premiums that the insurance company invests. Your cash value is tax-deferred until it is withdrawn.

​A whole life policy also offers a variety of choices. This includes single-premium, traditional, and interest-sensitive policies. A single-premium is for someone who wants to make one large payment therefore purchasing the policy up front. Like other whole life insurance options, single-premium whole life insurance has the same tax protection on returns, while also accumulating cash value.

​A traditional whole life insurance policy offers you a guaranteed minimum rate of return on your cash value portion. An interest-sensitive whole life insurance policy offers a variable rate on your cash value portion. With interest-sensitive whole life insurance it is possible to have more flexibility with your life insurance policy. This includes increasing your death benefit without raising your premiums depending on the market and the rate of return on your cash value portion. 

What are the benefits of a Whole Life Insurance Policy compared to other life insurance policies?

Unlike term life insurance, a portion of your premium money goes toward your cash value which in turn could pay off your entire policy only after a few years. Also, unless you make a change to your whole life insurance policy, you have lifelong coverage with no future medical exams. Your premium will remain the same during the time you are covered unless you choose otherwise. Lastly, Whole life is also an excellent choice because of the tax savings.