Whole Life |
| Whole Life Insurance in the United States |
| Whole Life is the most basic form of cash value life insurance. The insurance company essentially makes all of the decisions regarding the policy. Regular premiums both pay insurance costs and cause equity to accrue in a savings account. A fixed death benefit is paid to the beneficiary along with the balance of the savings account. Premiums are fixed throughout the life of the policy even though the breakdown between insurance and savings swings toward the former over time. Management fees also eat up a portion of the premiums. The insurance company will invest your money primarily in fixed-income securities, meaning that your savings investment will be subject to interest rate and inflation risk. |