Whole Life Insurance
Permanent coverage that lasts your entire life and builds a slow-growing cash value.
What You Need to Know
Whole life insurance combines a guaranteed death benefit with a forced savings component called cash value.
Premiums are locked in for life, but they are much higher than term coverage. Cash value grows 2-4% annually and can be borrowed against, yet high fees and commissions make it unsuitable for most households unless there is a specific estate-planning need.
Sources & References
This information is sourced from authoritative government and academic institutions:
- naic.org
https://www.naic.org/documents/consumer_guide_life_insurance.pdf
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Related Terms in Healthcare & Insurance
ADLs (Activities of Daily Living)
Six basic self-care tasks—like bathing and dressing—that determine long-term care eligibility.
Any Occupation
Disability coverage that only pays benefits if you cannot work in any reasonable job based on your experience and education.
Assisted Living
Housing for people who need help with daily tasks but not round-the-clock medical care.
Beneficiary
The person, trust, or organization that receives the life insurance payout.
Benefit Period
How long your disability insurance will pay benefits once a qualifying claim is approved.
Cash Value
The savings component inside certain permanent life insurance policies.