WHAT IS Whole Life Insurance?

What It Protects Against Financial loss to beneficiaries due to the death of the insured.

How It Works The oldest of permanent insurance products available today, whole life guarantees the death benefit will be paid as long as the premium is paid each year. The premium generally remains constant and is set high enough at time of purchase that builds cash values in early years to help pay for the higher insurance costs later in life.

How It Works Dividends Participating whole life policies also offer upside potential. A participating policy allows owners to receive portions of the insurer’s surplus each year in what is called a policy dividend. Owners may take the dividend in cash or reinvest it in the policy. Reinvesting can create larger dividends in ensuing years and raises the death benefit.

Who Needs It Those who need guaranteed coverage for life, either to protect a beneficiary or to help pay for estate taxes or other costs incurred at death. Also, those who want their life insurance costs to remain predicable and affordable throughout life.

When To Buy It Permanent insurance is best purchased early in life, when annual premiums are lower. Older buyers may find it highly effective for estate planning.

How You Pay For It Premiums that are the same every year.

Cash value paid to owner Policyholder pays premium or Part of premium goes into cash value Part of premium pays insurance costs Death benefit paid to heirs

WHAT IS Whole Life Insurance?