Whole life insurance is a form of permanent life insurance that features guaranteed premiums, death benefits, and cash value. Whole life insurance policies also give you the potential to receive dividends, which can increase the value of the policy when the insured is living or provide an increased death benefit for your beneficiaries.
You may want to purchase a whole life insurance policy if you want:
- Protection for life
- Payments that stay the same each year
- To be able to put additional money into the policy on a tax-favored basis
- Cash value you can use while you are living