How whole life insurance works
Whole life insurance is designed for permanent death-benefit protection while premiums are paid as required. Depending on the product, it can include contractual cash values, paid-up values or participating dividends. Dividends are generally not guaranteed.
Whole life may fit estate planning, final expenses, or certain long-term corporate planning needs. It is not automatically the best option for a temporary mortgage obligation.
Compare premium-payment designs
- 10-pay: premiums planned over ten years, typically with higher annual cost
- 20-pay: a longer limited-pay schedule
- Pay-to-65: premiums scheduled to a selected age
- Life-pay: premiums can continue for life, subject to contract terms
Participating and non-participating contracts
Participating contracts may pay policy dividends based on insurer experience, subject to declarations and product rules. Non-participating contracts offer different guaranteed structures and typically do not include participating dividends.
Illustrated values are projections, not promises, unless the contract specifically guarantees them. Review guaranteed and non-guaranteed values separately.