May 08
Whole life insurance is the most common type of permanent insurance. The policy provides a guaranteed death benefit along with guaranteed cash values. Part of each premium payment is applied to the policy’s cash value account, which grows on a tax-deferred basis.1
In some cases, whole life policies may also be entitled to policy dividends, declared from the insurer’s surplus, and an excess-interest whole life policy may earn an additional amount of interest after a specified period of time. Policy dividends and excess interest payments are NOT guaranteed.