What is Whole Life Insurance?

Life insurance is essential to your family’s survival after your death. It is important that you plan ahead, even if you don’t want to consider your demise. There are many different types of life insurance. Whole life insurance is an option that should be taken into consideration when purchasing life insurance.

• Whole life insurance is also called Universal life insurance or Cash Value life insurance.




• Whole life insurance usually cost more money than term life insurance.




• It is usually better to get whole life insurance because it builds up a cash value over time.




• Whole life insurance can build up equity and allow you to borrow money from it in the future.




• The longer you own a whole life insurance policy, the more money you will earn.




• Surrendering a whole life insurance policy upon death will mean that your family will not have to pay taxes on the money.




• Surrender values vary on whole life insurance policies.




• Taxes only have to be paid on the amount of money earned from interest, not on the premiums paid at the time of surrender.




• If you plan to own a life insurance policy for more than twenty years, you should purchase a whole life insurance policy.




• The premium cost for whole life insurance is usually consistent over time.