Whole life is a type of permanent insurance that offers lifelong protection and allows the policyholder to accumulate cash value on a tax-deferred basis. In contrast to term insurance, a whole life insurance policy remains in force as long as you continue to pay your premiums.

It’s a smart choice for someone who needs coverage for an extended period of time. You may have financial commitments still in place long after the children have graduated college or your mortgage has been paid off. For instance, your spouse may outlive you by many years and will need to deal with daily living expenses. Or you may want to be able to pass something on to your children or grandchildren.

Whole life insurance is considered an investment. Simply put these types of policies have the potential to build cash value over time as well as pay a death benefit to your beneficiary. The cash value grows tax-deferred while the policy is in force. The insured may use the policy as collateral, borrow against it or even borrow from it. If the insured borrows from it, the end cash payout obviously will be lower for the named beneficiary unless the amount is repaid.

Ask yourself: Do I want lifelong financial protection? Do I want premiums to remain constant or stable over my lifetime? Do I want the ability to accumulate cash on a tax-deferred basis? Do I want to be able to withdraw or borrow against accumulated cash? (Note: Withdrawal and loans will reduce death benefit.) Still have questions? Our friendly trained representatives are happy to answer them for you. Call us at (800) 368-7021 from 8 am – 4:30 pm (CST), Monday through Friday, for live assistance. You can also email us.