Life insurance
Whole life insurance
In plain EnglishPermanent coverage with a price that never changes, and cash value that never earns a negative rate.
What it is
Whole life insurance covers you for your entire life, as long as premiums are paid. Your premium is set when you buy the policy and never goes up.
Part of every premium builds cash value, which isn’t taxed while it grows. The rate it earns is never negative, but the rate itself isn’t guaranteed and can change over time. You can borrow against the cash value while you’re alive, and your beneficiaries receive the death benefit when you pass away.
How it works
Step by step.
- Choose your coverageThe death benefit and the premium are locked in from day one.
- Cash value buildsIt never earns a negative rate. The rate can change over time, and growth is slower at first and picks up over the years.
- Use it if you need toBorrow against the cash value, or surrender the policy for its cash value. Unpaid loans reduce what your family receives.
- Your family is covered for lifeWhenever you pass away, your beneficiaries receive the death benefit.
The honest version
What’s good, and what to watch.
Every product has trade-offs. We’d rather you hear them from us now than discover them later.
What we like
- Never expires
- Premiums never go up
- Cash value never earns a negative rate
- Tax-deferred growth you can borrow against
What to watch
- Costs much more than term for the same coverage
- Cash value grows slowly in the early years
- Cancelling early can mean getting back less than you paid
- Policy loans reduce the death benefit if not repaid
Frequently asked questions
Straight answers.
Is whole life a good investment?
It’s insurance first. The cash value never earns a negative rate, though the rate isn’t guaranteed and usually grows more slowly than market investments. Its real value is coverage that lasts your whole life.
How is it different from final expense?
Final expense is a smaller whole life policy with simpler approval, meant to cover funeral and final bills. Regular whole life comes in larger amounts.
What if I can’t keep paying?
Many policies have options, like using the cash value to keep coverage going or switching to a smaller “paid-up” policy. Call us before you let a policy lapse.
Often paired with
Related coverage.
Final expense insurance
A smaller whole life policy that covers the funeral and final bills, so your family doesn’t have to.
Learn more →Indexed universal life (IUL)
Lifelong protection plus cash value linked to a market index — with a guaranteed floor when the index drops.
Learn more →Term life insurance
The most coverage for the lowest price, for the years your family depends on you most.
Learn more →General information, not tax or legal advice. Features, availability and rules vary by insurance company, product and state — we’ll walk you through the details of any policy before you apply.
Is this right for you?
Tell us a little about your family and goals. We’ll compare your options side by side — no pressure, no obligation.