WHOLE LIFE INSURANCE

What is whole life insurance?

It's life insurance that you own for your entire lifetime. The amount of the death benefit or face value can be selected to meet your needs. Premiums, or payments, are fixed and can be paid monthly, quarterly, semi-annually, or annually. As more premiums are paid, your policy accumulates a cash value, which grows on a tax deferred basis.

In essence, whole life is like buying a house versus renting it. The monthly cost is higher than it would be for a term life policy, but with each payment you make, you gain "equity."

Why would I want it?

You want to ensure that your family will have the money necessary to live in comfort, purchase a home, pay for college, and so on, should something happen to you. At the same time you want to have a policy that you own for your entire lifetime and accrues cash value, which you can borrow against for any purpose. Loans, however, require you to pay interest and any borrowed amount you do not pay back is deducted from the payout to your beneficiary at the time of your death.
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