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. 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 whole life insurance.
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 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
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
The most noteworthy benefits and drawbacks of whole life insurance include:
Whole life insurance lasts forever, no matter how old you are when you pass away. Unlike with a term life insurance policy, there is no expiration 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 be set in stone, 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 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.
Here’s a brief look at the difference between whole life insurance 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 can be a good option if you want protection that lasts a lifetime. A whole life policy can 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.
Aflac offers whole life insurance with less expensive 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.
Explore your life insurance options.
1 Investopedia - Whole Life Insurance Definition: How It Works, With Examples. Updated September 7, 2022. https://www.investopedia.com/terms/w/wholelife.asp. Accessed April 10, 2023.
2 Investopedia – Whole Life Insurance: Pros and Cons. Updated December 5, 2022. https://www.investopedia.com/whole-life-insurance-pros-and-cons-5079309. Accessed April 14, 2023.
3 Forbes - What Is Whole Life Insurance? (& How Does it Work?) Updated March 29, 2023. https://www.forbes.com/advisor/life-insurance/whole-life-insurance/. Accessed April 10, 2023.
Aflac insurance coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage underwritten by American Family Life Assurance Company of New York.
Final Expense Whole Life Insurance is underwritten by Tier One Insurance Company.
The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22.
Life – 68000 Series - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. Term/Whole Life – B60000 Series – In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life - Q60000 Series - In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Group Term Life Q60000 Series - In Delaware, Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
The content herein 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. This is a brief product overview only. 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 plan selected. Optional riders may be available at an additional cost. Plans and riders may also contain a waiting period. Refer to the exact plans and riders for benefit details, definitions, limitations and exclusions. For availability and costs, please contact your local Aflac agent/producer.
Aflac’s family of insurers include Aflac, Aflac New York, Continental American Insurance Company, and Tier One Insurance Company.
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