What Is Whole Life Insurance?

What is whole life insurance? Well, whole life insurance is a type of permanent life insurance that provides guaranteed lifetime coverage as long as premiums are paid. It pays a guaranteed death benefit to your beneficiaries and also builds cash value which grows over time and can be accessed while you're alive through loans or withdrawals. Premiums are typically level and the policy includes contractual guarantees that make it a stable, long-term financial tool.

Three takeaways. One, lifetime coverage with a guaranteed death benefit. Two, builds cash value you can access while living. Three, level premiums and contractual guarantees for stability.

Additional glossary links if you want to check them out: term life insurance, cash value life insurance, policy loan, death benefit.