Whole Life Insurance

Whole life insurance is the most traditional form of permanent life insurance. It provides a guaranteed death benefit for the insured's entire lifetime, level premiums that never increase, guaranteed cash value growth at a minimum interest rate, and — for participating policies from mutual companies — the potential for non-guaranteed dividends (not guaranteed). Unlike universal life or IUL, whole life does not require active management — the policy performs according to contractual guarantees regardless of market conditions or credited rate changes. Cash value accumulates on a tax-deferred basis and can be accessed via policy loans. Whole life is often used for estate planning, final expense coverage, and as a component of a conservative wealth-transfer strategy.