PLANRIGHT LIFE INSURANCE
Whole Life Insurance: Protection Designed to Last a Lifetime.
Whole life insurance combines lifelong death benefit protection with a cash value component that can grow over time. Explore how it works, its guarantees, and whether it fits your family's long-term financial goals.
Coverage and guarantees depend on policy provisions and payment of required premiums.
START WITH THE BASICS
What Is Whole Life Insurance?
Whole life insurance is a type of permanent life insurance designed to provide coverage throughout the insured person's lifetime, as long as the policy remains in force according to its terms.
Unlike term life insurance, which provides protection for a specified period, whole life insurance generally includes a guaranteed death benefit, scheduled premiums, and a cash value component.
Lifetime Protection
Designed to provide death benefit protection for life when required premiums are paid and the policy remains in force.
Cash Value
A portion of the policy's structure supports cash value that can accumulate according to the contract's guarantees.
Long-Term Planning
May help with family protection, legacy planning, and other long-term financial objectives.
UNDERSTANDING YOUR POLICY
How Does Whole Life Insurance Work?
Choose Coverage
Determine the death benefit amount based on your financial needs.
Apply and Qualify
The insurer reviews your application and underwriting information.
Pay Premiums
Make required premium payments according to your policy's schedule.
Build Cash Value
Cash value may accumulate over time according to policy provisions.
KEY FEATURES
What Makes Whole Life Insurance Different?
Guaranteed Death Benefit
Traditional whole life policies generally provide a guaranteed death benefit as long as the contract's conditions are satisfied.
Level Premiums
Many traditional whole life policies have scheduled premiums that remain level for the required payment period.
Guaranteed Cash Value
Traditional whole life policies generally include contractual cash value guarantees that grow according to a policy schedule.
Guarantees are based on the claims-paying ability of the issuing insurance company. Policy loans, withdrawals, missed premiums, or other policy changes may affect coverage, available cash value, and the death benefit.
A LONG-TERM FEATURE
How Does Whole Life Cash Value Work?
Cash value is a feature of permanent life insurance that can build gradually as the policy remains in force. The amount available depends on the policy design, premium schedule, and contractual provisions.
Accumulation Over Time
Cash value generally develops gradually. Early policy years may have limited available cash surrender value.
Policy Loans
Eligible policyholders may borrow against available cash value. Loans accrue interest and unpaid balances can reduce policy benefits.
Access and Flexibility
Some policies permit withdrawals or surrender, subject to contract provisions, potential charges, and tax consequences.
Policy loans are not withdrawals from a bank account. Unpaid loans and interest reduce the death benefit and may cause a policy to lapse. Lapses or surrenders involving outstanding loans may create taxable income.
PARTICIPATING POLICIES
Can Whole Life Insurance Pay Dividends?
Some participating whole life policies may pay dividends when declared by the issuing insurance company. Dividends are not guaranteed and may vary from year to year.
Depending on the contract, dividend options may include receiving cash, reducing premiums, accumulating dividends with the insurer, or purchasing paid-up additional insurance. These options and their effects should be reviewed with a licensed professional.
WHO IT MAY HELP
Who Should Consider Whole Life Insurance?
Whole life insurance may be appropriate for individuals who want permanent coverage and understand the long-term premium commitment.
Families Planning Ahead
Help provide a financial benefit for loved ones regardless of when death occurs, while coverage remains active.
Legacy Planning
May help provide funds to beneficiaries as part of a broader estate or legacy planning strategy.
Long-Term Coverage Needs
May be considered by people who prefer permanent protection instead of coverage that expires after a set term.
COMPARE YOUR OPTIONS
Whole Life vs. Term Life Insurance
| Feature | Whole Life | Term Life |
|---|---|---|
| Coverage Duration | Designed for lifetime coverage | Specific period, such as 10, 20, or 30 years |
| Initial Premium | Generally higher for comparable coverage | Generally lower |
| Cash Value | Generally included | Generally not included |
| Premium Structure | Often level under the contract | Often level during the initial term |
| Primary Purpose | Permanent protection and long-term planning | Protection during specific financial obligations |
| Important Consideration | Long-term premium commitment | Coverage expiration and renewal costs |
ADDITIONAL FEATURES
Can Whole Life Insurance Include Living Benefits?
Some whole life insurance policies may offer accelerated death benefit riders for qualifying events, such as certain chronic, critical, or terminal illnesses.
These riders are not available with every policy. Eligibility, covered conditions, costs, and restrictions vary. Accelerating a death benefit generally reduces the amount payable to beneficiaries.
PLAN YOUR PROTECTION
How Much Whole Life Insurance Do You Need?
Consider your family's financial needs, outstanding debts, final expenses, income replacement, long-term objectives, and existing coverage. Your budget and ability to maintain premiums are also important.
Calculator results are educational estimates and are not whole life policy illustrations or personalized recommendations.
GETTING STARTED
How Do You Apply for Whole Life Insurance?
Identify Your Goals
Decide whether you need permanent protection, cash value features, or both.
Review Policy Options
Compare available products, premium commitments, guarantees, and policy features.
Apply When Ready
Complete an application and underwriting requirements. Approval is not guaranteed.
COMMON QUESTIONS
Whole Life Insurance FAQs
Does whole life insurance last forever?
Traditional whole life insurance is designed to provide lifetime coverage, provided the policy remains in force and its requirements are met.
Are whole life insurance premiums fixed?
Many traditional whole life policies have level scheduled premiums. Review the actual contract to confirm premium amounts and payment duration.
Does whole life insurance build cash value?
Yes. Traditional whole life insurance generally includes cash value that accumulates under contractual provisions. Available surrender value may be limited during early policy years.
Can I borrow from my whole life policy?
Eligible policyholders may be able to borrow against available cash value. Loan interest applies, and unpaid loans reduce policy benefits and may create lapse or tax risks.
Is the cash value growth guaranteed?
Traditional whole life policies generally include guaranteed cash value schedules. Non-guaranteed elements, including dividends, are separate.
Are whole life dividends guaranteed?
No. Dividends on participating policies depend on the insurer's declarations and are not guaranteed.
Is whole life insurance better than term?
Neither is universally better. Term insurance may suit temporary protection needs, while whole life may suit permanent coverage objectives. Budget and policy suitability matter.
Do I need a medical exam?
Requirements vary. Some products offer simplified underwriting, while others may require an exam or additional medical information.
Can I cancel a whole life policy?
Generally yes. You may be able to surrender the policy for its available cash surrender value, if any. Charges, outstanding loans, and tax consequences may apply.
Can I have term and whole life insurance?
Yes. Some people combine permanent protection with additional term coverage, subject to underwriting and financial justification.
EXPLORE YOUR OPTIONS
Build a Long-Term Protection Plan for the People Who Matter Most.
Learn whether whole life insurance fits your goals, compare available policy features, and review your options with a licensed insurance professional.
Policy availability, eligibility, premiums, guarantees, and riders vary by insurer and state.