What is Whole Life Insurance?
Whole life insurance was the first permanent life insurance product to be sold by insurance companies. The name comes from the fact that it is designed to be in force for your entire life. It is a permanent type of insurance that is intended to provide a death benefit when the time comes. Whole life insurance has guaranteed premiums and a guaranteed death benefit. In addition, it is typically eligible to receive dividend distributions from the insurance company. The premiums and death benefit are guaranteed based on the amount of premiums funded. In essence, the price can never go up on a whole life insurance policy and the death benefit cannot decrease.
Pros and Cons of Whole Life Insurance:
Where Might Whole Life be a Better Fit: