How does Whole Life Insurance work?
Whole life insurance is a type of permanent life insurance that pays out benefits over time. It offers a guaranteed death benefit, while accumulating cash value, which can be accessed through tax-advantaged policy loans, and may eventually pay for the monthly premium.
You select the amount of coverage that fits your needs. Your original monthly premium amount is guaranteed for the extent of the policy and will not change as you age. As you pay the monthly premium, the cash values increases and endows at maturity. The death benefit of the policy does not reduce as long as you pay the basic premium.
Whole Life Insurance Benefits:
The most important benefit of a life insurance policy is that it will help your family and children have financial security in a difficult time.
Types of Whole Life Insurance Policies:
All Providence Insurance policies provide the full scope of benefits of Permanent Life Insurance. We are proud to offer three different policies which vary only by the cost of premiums.
Contact us for more detailed information.
Also, take a moment to read a nice, detailed explanation on the Investopedia website.