Whole Life insurance provides you with coverage for your whole life. It is permanent. The premium or cost of the insurance remains permanent; the same as the day you purchase it for the rest of your life.
Whole life insurance is unique in that it builds up a cash value, and the policyholder can borrow money against the accumulation know as “cash value”. It is also important to note that some whole life insurance policies can be paid-up over a period of years, and sometimes can even grow in value over the original death benefit.
This type of insurance ensures that your beneficiary or beneficiaries WILL receive the contractual amount TAX FREE when you pass away.
You can use whole life insurance for final expenses, estate and tax planning to offset capital gains, charitable giving, or just because you want to leave some loved ones some money.