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Whole life insurance is a permanent life insurance policy that provides lifelong coverage and includes a cash value component that grows on a tax-deferred basis. Unlike term life insurance, it doesn’t expire as long as you continue paying your premiums. Read on to learn how whole life insurance works, what it costs and how it compares to other policies so you can choose the right coverage with confidence.
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Whole life insurance is a permanent life insurance policy that pays a death benefit to your beneficiaries when you pass away. It also includes a cash value component that grows on a tax-deferred basis over time.
When you purchase a whole life insurance policy, you pay a fixed premium on a regular schedule. A portion of each payment funds your death benefit, while another portion builds your cash value over time. As long as you keep up with your premiums, your coverage remains in place for life, providing your beneficiaries with a guaranteed payout.
Now that you understand how whole life insurance works, here’s a closer look at its key features:
As your cash value grows, you may be able to access it through loans, withdrawals or by surrendering the policy. Keep in mind that loans and withdrawals can reduce your death benefit, and surrendering your policy ends your coverage.
Let’s look at a simple example to see how whole life insurance works in real life.
A married father of three children purchases a whole life insurance policy to help protect his family financially. Years later, he passes away unexpectedly, and his policy provides a $500,000 death benefit.
His loved ones use the payout to:
This financial support can help his family maintain financial stability as they adjust to life without him.
Protect yourself and your family with coverage from Aflac.
Get StartedWhole life insurance generally costs more than term life insurance because it offers lifelong coverage and builds cash value.
Your premium depends on various factors, such as your:
Here are average monthly costs for a $500,000 policy by age and gender:1
| Age | Male | Female |
|---|---|---|
| 30 | $282 | $247 |
| 40 | $382 | $352 |
| 50 | $571 | $498 |
| 60 | $887 | $782 |
Whole life insurance may be a good fit if you:
Term life insurance is another popular life insurance option. Here are some notable differences between whole and term life insurance:
Now that you know how whole life insurance works, you can decide whether this type of policy fits your needs.
Aflac can help you explore your whole life insurance options to find the right policy. Speak with an agent today to learn more and get a quote.
Get Started
Whole life insurance offers lifelong coverage and cash value growth. Learn how whole life insurance works and the pros and cons of this policy.
Learn more about the differences between term vs. permanent life insurance so you can decide which type of policy is right for you.
Whole life insurance offers lifelong coverage and cash value growth. Learn how whole life insurance works and the pros and cons of this policy.
Learn more about the differences between term vs. permanent life insurance so you can decide which type of policy is right for you.
1 Investopedia. How Whole Life Insurance Works. Updated May 07, 2025. https://www.investopedia.com/terms/w/wholelife.asp. Accessed March 26, 2026.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent/producer.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans – A68000 series/Term Life: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000/Term Life: In Arkansas, Oklahoma, Pennsylvania, Texas & Virginia, Policies ICC18B60200, ICC18B60300, & ICC18B60400. Whole Life: In Arkansas, Oklahoma, Pennsylvania, Texas & Virginia, Policies: ICC18B60C10, ICC18B60100. B61000, Juvenile series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO & B61JTO. Q60000 series/Term Life: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania & Texas, Policy ICC18Q60200M. In Delaware, Policy Q60200M. In New York, Policy: NYQ60200M. Whole Life: In Arkansas, Delaware & Oregon Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In New York, Policy: NYQ60100M. Not available in VA.
Receipt of accelerated death benefits may affect eligibility for public assistance programs. Benefits may also be taxable, and are not expected to receive the same favorable tax treatment as other types of accelerated death benefits that may be available.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Not available in NY.
Coverage/plan levels may not be available in all states, including but not limited to NJ, NM or VT.
Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Aflac WWHQ | Tier One | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
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