What is Whole Life Insurance and the Cash Value of Whole Life Insurance?
Whole life permanent insurance is guaranteed to last for your entire life. The biggest benefit of this is that the cash value of whole life insurance does two things.
- It provides an emergency fund to be used as any other asset.
- It accumulates on a tax deferred basis.
Most policies generate dividends which can be used to increase death benefits, reduce premiums, or add to the cash valueof your policy.
So when you ask yourself what is whole life insurance, know that with whole life permanent insurance the cash value isan asset, just like your house, real estate, savings accounts or your mutual funds. And since it is an asset you can useit to help you with a variety of things like college costs, purchasing a new home, or to supplement your retirement. Whole life permanent insurance helps you when you're here and protects your family when you're gone.
