How whole life differs
Unlike term coverage, whole life is intended to remain in force for the insured’s lifetime when premiums are paid as required. It generally costs more than term coverage for the same initial death benefit.
- A death benefit designed for lifelong protection
- Premium schedules defined by the contract
- Cash value that may grow over time
Using policy cash value
Loans and withdrawals can reduce cash value and the death benefit, may create tax consequences, and can increase lapse risk. Dividends are not guaranteed unless the contract says otherwise.
Review the illustration carefully
Separate guaranteed values from non-guaranteed assumptions and ask how premiums, loans, surrender charges, and lapse provisions work.
Product availability, eligibility, features, and rates vary by state, carrier, and individual circumstances. Coverage is not effective until a carrier approves an application and the required premium is paid.