Help protect your family while growing your wealth
Whole life insurance is a type of permanent life insurance that offers two primary benefits: a guaranteed death benefit paid to your beneficiaries when you pass away, as long as you continue to pay the premium, and a cash value that can be withdrawn or borrowed from during your lifetime.
- How is whole life different from term life? Whole life insurance covers you for your entire life, and part of your premiums contribute to the cash value—a tax-efficient financial asset that is guaranteed to grow. Term life insurance covers you for a limited period – typically 10, 20, or 30 years – and doesn’t provide cash value.
- Which other type of life insurance has cash value? There are two main types of permanent life insurance with cash value: whole life and universal life insurance. Whole life premiums are fixed for life – they never go up or down. However, if you need more flexibility, a universal life policy lets you adjust monthly premiums within a specific range.
- What can you do with cash value? It typically takes a few years to grow into a useful amount, but once that happens, you can use it in a variety of ways. For example, you can take out low-interest tax-efficient loans against it, use it to help pay premiums, or even cash out the policy to help fund your retirement.
- Are whole life insurance policies worth it?
- Are whole life insurance premiums tax deductible?
- What are the disadvantages of whole life insurance?
- What is the best whole life insurance?
- How much does a $1,000,000 whole life insurance policy cost?
- Coverage amount
- The approval process
- Riders to tailor coverage
Whole life insurance can be a life-long asset
Nick Carlson purchased his Guardian whole life insurance policy when he was 26 years old. Years later, he was able to use that policy to buy a home with his new wife and plan for the future education of their newborn child.
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Whole Life Insurance | Guardian
Frequently asked questions about whole life insurance
As with other financial products, that depends on the life situation and goals of the person insured. It can provide financial stability that other products may not because cash value growth is guaranteed and is insulated from financial market performance. Also, if you need protection that lasts your entire life, a whole life policy guarantees level rates. Universal life policies provide more flexibility, but in certain circumstances, you may have to pay higher premiums to maintain coverage.
A whole life Insurance policy can provide all these benefits
Protection that never expires
From day one, it can provide an income tax-free death benefit to help protect your family's financial well-being. It's coverage that lasts your entire life, as long as premiums are paid.
Cash value that grows
There's a cash value that grows at a guaranteed rate, insulated from market fluctuations. The policy's cash value is an asset you can access during your lifetime for policy loans, to help pay premiums, or supplement your retirement income.
Dividends can add value
While not guaranteed, Guardian may pay annual dividends to participating policyholders based on company performance to. These can increase a policy's value beyond the growth rate guarantee and help build your overall wealth.
The cost never goes up
A whole life insurance policy has fixed premiums, meaning your payments to maintain your policy will never go up. As long as you continue to make premium payments, you're covered for life. You may be able to choose a limited payment policy that allows you to stop making premiums after a set period of time.
Unique tax advantages
The cash value growth in your policy is tax-deferred, so you don't have to pay taxes on it every year. When you borrow against cash value, the money you withdraw isn't taxed as income. Also, the death benefit is income tax-free to your beneficiaries.
Deciding if whole life insurance is right for you
Compared to other forms of coverage, it's hard to beat the protection and guarantees offered by a whole life policy. But if you've been looking at term life insurance quotes, you probably know that a permanent life insurance policy, like whole life, costs significantly more. What's right for you? A lot depends on your age, your financial obligations, and your personal circumstances. If you're relatively young and healthy, your life insurance cost will be lower. And if you have many working years ahead of you, you'll have more time to accumulate cash value.
Learn more about how to choose between types of life insurance.
Things to consider when choosing a whole life insurance policy
How much life insurance coverage you need mostly depends on where you live and how many people depend on your income. In general, the younger you are, the more coverage you'll need to compensate for the years of potential wage-earning ahead of you. And the more people depend on you, the more coverage you may want to meet their needs.
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Whole Life Insurance | Guardian
This article is for informational purposes only. Guardian may not offer all products discussed. Please consult with a financial professional to understand what life insurance products are available for sale.
