Whole Life Insurance

Whole life insurance is a type of permanent life insurance that provides coverage for the policyholder's entire life, as long as the premiums are paid. Unlike term life insurance, which provides coverage for a specified term (such as 10, 20, or 30 years), whole life insurance does not expire as long as the premiums are paid.

In addition to providing death benefit protection, whole life insurance also has a savings component, often referred to as "cash value." This cash value component grows over time and can be used by the policyholder for various financial needs, such as supplementing retirement income or paying for unexpected expenses. The policyholder can also take loans against the cash value.

Whole life insurance typically comes with higher premiums compared to term life insurance, due to its permanent coverage and savings component. However, the trade-off is that it can provide lifelong coverage and a source of savings for the policyholder. It's important to consider the policyholder's goals and needs, as well as their budget, when deciding whether whole life insurance is the right choice for them.