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Whole life insurance can cover you for a lifetime, providing a death benefit payout to beneficiaries in the event of your passing. From great coverage to fixed premiums, this type of policy offers many benefits. But before you move forward with a policy, it’s a good idea to weigh the pros and cons. Here’s everything you need to know about what whole life insurance is, how it works, and the pros and cons of this policy.
Table of Contents
Whole life insurance is a permanent policy that offers lifelong coverage. This means that it will pay out to your loved ones no matter when you pass away.
Whole life insurance is designed to last your entire life. It will never expire as long as you continue to pay premiums, which will never change. In addition to a guaranteed death benefit for your beneficiaries, it can help allow you to build cash value, which accrues interest over time. You may tap into the cash value while you’re still alive through a withdrawal, loan, or by surrendering the policy.1
Some noteworthy pros and cons of whole life insurance include:
Whole life insurance can provide lifelong coverage, no matter how old you are when you pass away. Unlike with a term life insurance policy, there is no termination date.2
Once you receive a premium amount based on factors like your age and health status, you won’t have to worry about it changing. Your premiums will stay the same, making it easy to budget for them.
A whole life insurance policy offers a cash value growth component. As your cash value increases, you can withdraw funds or borrow against them to help cover expenses or meet financial goals.3
Depending on the company you choose, whole life insurance may be eligible for dividends, which you can redeem for cash.3 Dividends depend on the company’s financial performance, interest rates, and investment returns.
Compared to other types of life insurance, whole life insurance can be complex and more difficult to understand. You may need to review your policy multiple times or speak to a company representative to ensure you know how it works.
Due to the lifelong coverage and cash value component, whole life insurance comes with higher premiums.2 It may be a challenge to cover them if you’re young or don’t have a lot of extra cash at your disposal.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedNow that you know how whole life insurance works and the pros and cons, here’s a brief look at the differences between this type of policy and other permanent policies you might come across:
If you’re interested in whole life insurance from Aflac, follow these steps:
1. Fill out a short online form.
2. Wait for an Aflac representative to call you and discuss your options.
You can also start the process via phone and call Aflac directly at 1-855-782-5850.
In these situations, a whole life insurance policy may make sense:
Since whole life insurance is permanent, it may be a good option if you want protection that lasts a lifetime. A whole life policy can help give you long-term financial security.
Thanks to the cash value component, whole life insurance premiums can grow into a tax-deferred account. This can help give you the chance to pass down more to your beneficiaries. For example, you can tap into it while you’re still alive to help pay for your children’s college education.
Whole life insurance offers many pros and cons that you should consider when deciding whether this policy is right for you. If you want lifelong coverage, Aflac offers whole life insurance with cost-effective premiums that won’t change over time. This type of policy also comes with a cash value account that may grow tax-free and lasts your entire life. Chat with an agent to discuss your options and get a quote today.
Get Started
Whole life insurance rates can vary based on your age. Our whole life insurance rates chart will show how much whole life insurance may cost you.
Looking into getting a whole life insurance plan? Find out how whole life insurance works and the benefits, costs, pros, and cons.
Whole life insurance rates can vary based on your age. Our whole life insurance rates chart will show how much whole life insurance may cost you.
Looking into getting a whole life insurance plan? Find out how whole life insurance works and the benefits, costs, pros, and cons.
1 Investopedia - Whole Life Insurance Definition: How It Works, With Examples. Updated September 21, 2023. Accessed June 7th, 2024.https://www.investopedia.com/terms/w/wholelife.asp.
2 Investopedia – Whole Life Insurance: Pros and Cons. Updated December 5, 2022. Accessed June 7th, 2024. https://www.investopedia.com/whole-life-insurance-pros-and-cons-5079309.
3 Forbes - What Is Whole Life Insurance? (& How Does it Work?) Updated February 6, 2024. Accessed June 7th, 2024. https://www.forbes.com/advisor/life-insurance/whole-life-insurance/.
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.
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 - 68000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. 65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.
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 (Tier One NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. 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 Insurance | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
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