Whole Life

Whole life can be effective for building long-term cash and death benefit values, however it lacks some of the accountability and flexibility of newer hybrid products.

Time Span

Policies stay in force for life provided premiums continue to be paid, either by the policy owner or using the cash values of the policy.

Flexible Premium Schedule

Premiums are set at the beginning of the policy, and must be paid regularly, either by the policy owner, or by using automatic loans against the cash values of the policy or by surrendering the PUA coverage.

Stop and Go Premiums

Whole life policies are designed to build up cash values. When a premium is missed, the insurer will make automatic premium loans (APL) against the cash values or surrender existing Paid Up Additional (PUA) coverage to cover any missed premium.

Selection of Investment Options, including a smoothed investment account

While the cash values in a whole life policy result from the insurer investing a portion of the premiums in a smoothed account, whole life policies do not offer investment accounts for the direct investing of the policy owner.

Guaranteed Cash Surrender Values (GCSV)

All whole life products include guaranteed cash surrender values. In addition, the policy owner may purchase additional coverage on policy anniversaries that also have GCSVs. The pricing and cash surrender values for this coverage are based on the factors in effect on the date this additional coverage is purchased.

Shift from Single to Joint Last to Die

There are no contractual rights to switch from Single to Joint last to Die under a whole life policy.

Access CSV tax free in the event of disability

Whole life policies don't allow for tax free access to your cash values in the case of disability.

Investment option to provide a guaranteed fixed dollar monthly return for life

Whole life policies do not offer any investment options to the policy owner.

Initial Premiums

Premiums for whole life are high when compared with other term and permanent policies, but offer significant long-term cash and death benefit values.