Whole Life Insurance

Whole life insurance FAQs

What is whole life insurance?

Permanent coverage that lasts your entire life, with fixed premiums and a cash value component that grows tax-deferred. Part of each premium pays for the death benefit; the rest builds cash value you can borrow against. It's protection plus a conservative savings element in one policy.

How does whole life cash value work?

A portion of your premium goes into a cash value account that grows at a guaranteed rate plus potential dividends. You can borrow against it (loans accrue interest and reduce the death benefit if unpaid) or surrender the policy for its cash value. Growth is tax-deferred; loans are generally tax-free.

Is whole life insurance worth the cost?

It depends on your goals. It's 5-15x pricier than term for the same death benefit, so it's not the tool for maximum income protection on a budget. It fits when you want permanent coverage (estate planning, lifelong dependents), forced savings discipline, or tax-advantaged cash accumulation. We'll give you an honest comparison with term.

What's the difference between whole life and universal life?

Whole life has fixed premiums, guaranteed cash growth, and minimal flexibility — set it and forget it. Universal life offers flexible premiums and adjustable death benefits, with cash value tied to market or declared interest rates. Whole life is predictability; universal life is control. Your goals determine the fit.

Can I borrow from my whole life policy?

Yes — once cash value accumulates (usually after a few years), you can take policy loans, typically with no credit check and flexible repayment. Unpaid loans plus interest reduce the death benefit. It's a useful feature, but borrowing too aggressively can collapse the policy — we'll show you how to use it safely.