Whole life insurance is one of several different types of permanent life insurance policies from which to choose. It is the most basic type of permanent life insurance, and is characterized by a fixed premium, meaning the premium or rate you pay will not fluctuate). As the name suggests, a policy of this type will cover you for your whole life.
Like many other permanent life insurance policies, whole life insurance policies tend to accrue cash value through a savings component; however, the policyholder does not have control over how and where the money is invested or used.
There are a number of different types of permanent life insurance – meaning a policy that is active from the day you purchase it until your death, regardless of when you pass away. Whole life insurance is one such type, and the others carry their own characteristics:
Deciding what type of permanent life insurance best suits you and the needs of your loved ones can be tough, particularly because of the complexities of each different kind of policy and the coverage each affords. Speaking to an experienced life insurance broker can help you find the type of policy that is most appropriate for you, whether it be whole life insurance or another option.