Whole Life Insurance
Whole life insurance is a type of life insurance policy that provides coverage for an individual's entire life. It is designed to provide financial protection for both the insured and his or her beneficiaries. It also helps to ensure that the insured's family will be financially secure after the insured's death. Whole life insurance typically pays a fixed death benefit, which can be used to cover funeral expenses, debts, and other expenses. Additionally, it can build cash value over time, providing an additional source of income for the insured or his or her beneficiaries.
Types of Whole Life Insurance
There are three main types of whole life insurance:
- Traditional whole life Insurance,
- Universal life Insurance,
- Variable universal life Insurance.
Traditional whole life Insurance
Traditional whole life insurance provides a guaranteed death benefit and fixed premiums.
Universal life Insurance and Variable universal life Insurance
Universal life and variable universal life policies offer more flexibility in terms of premiums and death benefits.
All three types of whole life insurance build cash value over time, meaning that policyholders can borrow against it or receive a cash surrender value if they need it.