Whole life insurance is exactly what it sounds like. It's life insurance that lasts your whole life, or until you decide to cash it in early. You might want to consider the policy as an investment as well as an insurance policy. Whole life insurance policies offer fixed benefits, fixed cash value and fixed premiums. Because whole life policies have an investment and savings component that results in a cash value which will accumulate over time, the premiums will probably be higher than those for term life insurance. Your whole life insurance policy will be sheltered against taxes until you withdraw from its cash value. You can cash in your policy anytime, but don't expect to receive the full benefit value. That can only be received upon death. If you borrow against the value of the life insurance policy and don't repay the loan, the loan amount may be deducted from the death benefit. Consult an attorney in your area for more information about whole life policies.
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