What Is Whole Life Insurance? A Lifetime of Financial Protection and Value

What Whole Life Insurance Covers

Whole life insurance guarantees a death benefit to your beneficiaries and includes living benefits you can use while alive. Key features include:

• Lifetime Coverage: Guaranteed death benefit as long as premiums are paid

• Level Premiums: Your cost never increases, even as you 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• Dividends: Many policies pay dividends that can be reinvested or withdrawn (not guaranteed)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 option 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

Despite its strengths, whole life has 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. A licensed OnePoint advisor can help you compare top-rated options.

Who Should Consider Whole Life Insurance?

Whole life insurance is ideal for those seeking lifelong protection and long-term financial benefits. You may benefit if you are:

• High earners or professionals: Maximize tax-advantaged savings

• Parents and 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 ~$200/month for a $100,000 policy that builds cash value over time and pays dividends.

Frequently Asked Questions

How is whole life different from term life?
Term life is temporary and pure protection. Whole life is permanent and includes cash value, acting like a financial asset.

Can I withdraw cash from my whole life policy?
Yes. You can borrow or withdraw from your cash value tax-free if structured properly. Just know loans may reduce the death benefit.

Are whole life premiums tax-deductible?
Generally, life insurance premiums are not tax-deductible, 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) based on performance.

Can I convert term life to whole life?
Often, yes. Many term policies offer conversion options within a set timeframe—without new health exams.

How OnePoint Can Help

Whole life insurance is complex, and no two policies are the same. At OnePoint, 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 period

• Maximizing living benefits and riders

• Aligning coverage with estate or business goals

We’re your local, trusted advisor not a call center. Let’s build a policy that supports your life, legacy, and financial plan.

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