Whole life insurance is a type of permanent life insurance that provides coverage for the entire life of the insured person, as long as the premiums are paid. It also has a cash value component that grows over time, which the policyholder can borrow against or withdraw.
Whole life insurance is more expensive than term life insurance, but it offers several advantages. First, it provides lifelong protection, so the insured person’s family will receive a death benefit no matter when they die. Second, the cash value component can be used to supplement retirement income, pay for education expenses, or cover other financial needs. Third, whole life insurance policies are typically tax-advantaged, meaning that the cash value grows tax-deferred and death benefits are paid income tax-free.