Whole Life

Permanent Coverage and Cash Value

On the other end of the spectrum is Whole life insurance. If Term is renting, Whole life is buying a home. It is designed to provide coverage for your entire lifetime, as long as premiums are paid. The premiums are fixed, meaning they will never go up, regardless of changes in your health or age.

One of the distinct features of Whole life is the “cash value” component. A portion of your premium goes into a savings-like account within the policy that grows over time, tax-deferred. You can borrow against this cash value later in life for emergencies, education costs, or supplementing retirement income. It is not just a death benefit; it is a financial asset. I often recommend Whole life for clients who want to leave a guaranteed legacy, cover final expenses (funeral costs), or who have maxed out other tax-advantaged savings vehicles and want a stable, conservative place to grow their money.