What Is Whole Life Insurance?
Lifetime Coverage That Builds Value Over Time
Whole life insurance is a type of permanent life insurance that provides lifelong coverage and includes a cash value component that grows steadily over time. Unlike term life, which eventually expires, whole life stays in force for as long as you pay your premiums, making it a cornerstone of long-term financial planning.
At OnePoint Insurance Agency, we help individuals, families, and small business owners in [insert local area] explore whole life solutions designed to protect wealth, fund legacies, and bring lasting peace of mind.
What Whole Life Insurance Covers
Whole life insurance guarantees a death benefit to your loved ones and includes living benefits you can use while you’re alive. Key features include:
Lifetime Coverage: Guaranteed death benefit as long as premiums are paid
Level Premiums: Your costs never increase with age
Cash Value Growth: Builds guaranteed savings that grow tax-deferred
Dividends: Many policies pay dividends that can be reinvested or withdrawn (not guaranteed)
Loan Options: Borrow from your policy’s cash value for any purpose
It’s a powerful solution for:
Legacy planning and wealth transfer
Estate tax strategies
Final expense coverage
College funding or emergency reserves
Small business continuity planning
What Whole Life Doesn’t Cover
As with any financial product, whole life has its limitations:
Higher cost than term insurance for the same death benefit
Slower cash value growth in early years
Policy loans reduce the death benefit if not repaid
Surrender charges may apply if you cancel early
Not all policies are alike, riders, dividends, and cash accumulation vary by carrier. That’s why working with a licensed OnePoint advisor is key to finding the best fit for your needs.
Who Should Consider Whole Life Insurance?
Whole life is best for those who want lifelong protection and additional financial benefits. You may benefit if you are:
High earners or professionals: Maximize tax-advantaged savings
Parents & grandparents: Leave a financial legacy or fund education
Business owners: Use policies for key-person insurance or buy-sell agreements
Those planning final expenses: Lock in coverage and costs
Investors: Diversify with a guaranteed, tax-deferred asset class
💡 Example: A 40-year-old non-smoker might pay around $200/month for a $100,000 policy that builds cash value and may pay dividends over time.
Frequently Asked Questions
How is whole life different from term life?
Term life is temporary and pure protection. Whole life is permanent and builds cash value, functioning like a financial asset.
Can I withdraw cash from my whole life policy?
Yes. You can borrow or withdraw from your cash value, often tax-free if structured correctly. Just note that loans may reduce the death benefit.
Are whole life premiums tax-deductible?
Generally, no. But the death benefit is usually tax-free to your beneficiaries.
Does the cash value earn interest?
Yes. It grows at a guaranteed rate, and many carriers also pay dividends (not guaranteed).
Can I convert term life to whole life?
Often, yes. Many term policies include conversion options within a set timeframe—no new health exams required.
How OnePoint Can Help
Whole life insurance is complex, and no two policies are exactly alike. At OnePoint Insurance Agency, we work with multiple top-rated carriers to help you compare guarantees, dividends, fees, and flexibility.
We guide you through:
Understanding policy illustrations
Choosing the right face amount and payment schedule
Maximizing living benefits and riders
Aligning coverage with estate or business goals
We’re your local, trusted advisor—not a call center. Let’s design a policy that supports your life, your legacy, and your financial plan.
