Permanent Protection Built to Last a Lifetime

Term life insurance provides coverage for a set period and ends at the close of the term, and it typically provides the largest death benefit per premium dollar. Whole life is permanent and remains in force for your lifetime as long as required premiums are paid, and it builds guaranteed cash value. They solve different problems, and many clients use both.

The guarantees in a whole life policy, including the death benefit, premium level, and minimum cash-value growth, are contractual obligations backed by the issuing insurance carrier. The strength of those guarantees depends on the financial ratings and claims-paying ability of the carrier selected. Dividends are separate and are never guaranteed.

Some carriers issue participating policies that may pay dividends based on the carrier's results. Dividends are potential and are not guaranteed, and past dividend history is not a promise of future payments. Where dividends are paid, policies typically offer several options for how they may be applied.

Yes, available cash value may be accessed through policy loans or withdrawals. Policy loans are generally not taxable events while the policy remains in force, but loans and withdrawals reduce the available cash value and the death benefit, and loans accrue interest. It is important to understand how accessing cash value affects the policy long-term.

Most whole life policies include options if you can no longer pay premiums, such as using available cash value to keep the policy in force, reducing the death benefit to a paid-up amount, or converting to extended term coverage. Uhud will help you understand your specific policy options before any changes are made.

Yes. Many clients use a combination of permanent and term coverage to balance long-term objectives with current protection needs and budget. What the right combination looks like depends entirely on your situation, and it is something to work through with a licensed advisor rather than from a rule of thumb.