How it works
As long as premiums are paid, whole life is designed to provide a death benefit for your entire life. Premiums are typically fixed. A portion builds cash value at a rate set by the insurance company, and some policies may pay dividends, which are not guaranteed.
Who it often fits
- People who want coverage that doesn’t expire
- Families planning to leave something behind for loved ones
- Those who value predictable premiums and a stable long-term plan
Things to consider
- Cost. Premiums are higher than term coverage for the same death benefit.
- Time. Cash value usually builds slowly in the early years, so ending a policy early may return less than you paid in.
- Loans and withdrawals. Using cash value can reduce the death benefit and the cash value that remains, and unpaid loans can add interest.
Questions to ask
- What is guaranteed, and what is projected?
- What happens if I stop paying premiums?
- How do loans and withdrawals affect my coverage?
Talk with Alethe See all coverage
This page is general educational information. It is not tax or legal advice and it isn’t a recommendation for any specific product. Features, costs and availability vary by carrier and state.
Guarantees are subject to the claims-paying ability of the issuing insurer.