Whole Life

Whole life is the simplest permanent insurance option. Just like any other life insurance products, whole life is designed to provide financial protection to its policyholders in the event of injury/illness or death. Its premiums remain level for the life of the policy, which means your insurance company cannot raise your premiums as you get older or if you get sick. Premium for whole life policy tend to be significantly higher than term life policy with the same amount of coverage because of its potential to generate cash value.

Whole life offers lifetime protection and guaranteed death benefits if you pay the scheduled premiums. You can accumulate cash value on a tax-deferred basis. Most insurance companies offer a minimum rate of return on your cash value that is guaranteed. It will grow even when other investments stay stagnant or lose value. Whole life is the least risky version because its cash value portion is a simple savings account.