Whole life insurance is one of several types of life insurance you can purchase.  Simply defined, whole life insurance is permanent insurance that will last as long as the person lives and keeps paying the premiums. Whole life insurance is designed to provide protection for the whole life of the insured person. Whole life insurance is a good choice for you if you want to ensure that you have a life insurance policy in place for your entire lifetime and can comfortably afford the premiums, which will never increase. Also, many choose a whole life insurance policy to aid in their retirement planning.

Cash Value in Whole Life Insurance

Each whole life insurance policy has a guaranteed cash value, which usually grows based on a pre-determined schedule during the life of the policy and which should equal the death benefit upon maturity of the policy, typically at the age of 99 or 100.  Cash value in your policy will grow very slowly in the first few years of ownership, and as time goes on, the amount will increase more rapidly. The cash value in your insurance policy can also be used to  buy a paid-up whole life insurance policy in a reduced amount if you want to quit paying premiums, or you can access the cash value anytime from your policy in what is called a policy loan. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only.

Whole Life Insurance Premiums

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