Whole life insurance, also known as permanent life insurance, is a type of life insurance that provides coverage for the entirety of the policyholder's life, as long as the premiums are paid. It is a type of cash value insurance, which means that it not only provides a death benefit for the policyholder's beneficiaries, but it also accumulates cash value over time. This cash value can be used to pay premiums, borrowed against, or cashed out.
Whole life insurance policies typically have a level premium, which means that the premium stays the same throughout the life of the policy, and a guaranteed death benefit, which means that the death benefit will not decrease.
Whole life insurance policies are typically more expensive than term life insurance policies, which only provide coverage for a specific period of time. However, they offer more benefits and stability, as well as the opportunity to build cash value over time.
Whole life insurance policies are generally recommended for people who are looking for lifelong coverage and have a long-term savings goal. They are also often used as an investment and savings tool, and for estate planning purposes.