Whole Life Insurance

Whole life insurance is permanent life insurance and provides protection for life. As long as premiums are paid, a death benefit is paid to the beneficiary. The premiums for whole life insurance policies are designed to remain level over time. In addition, these policies accumulate cash values on a tax-deferred basis. The rate of return on whole life insurance cash values is dependent upon a number of factors including the results of an insurance company's investment performance. Cash values can be used for a variety of options:

• The policy can be surrendered at anytime for the cash surrender value.
• The policy owner can take out a loan and use the cash value as collateral.
• The policy can be changed to a reduced death benefit amount that is paid up.
• The cash values may be used to pay premiums for a certain period of time.
• The cash surrender value can be used to supplement retirement income.

Whole life insurance policies are valuable because they provide permanent protection and accumulate cash values that can be used for emergencies or to meet specific objectives. The cash values of whole life insurance policies may be affected by a life insurance company's future performance. Some factors that influence a life insurance company's performance are expenses, mortality experience, and investment performance.