Whole life, also known as “straight life,” is permanent life insurance that covers you to until you die or age 120. The premiums are fixed and as long as you pay the premiums, the policy stays in force. Whole life insurance also builds tax-deferred cash value that you can use, for any reason.

Types Of Whole Life

Traditional Whole Life– This is an ordinary straight life insurance policy that covers you until you die or age 120. Premiums vary based on death benefit amount, age and other factors, but once you choose a policy, your premium is fixed and remains that way for the life of the policy. Traditional whole life builds cash value that can be accessed while you’re still alive and may include other features, such as long-term care benefits.

Single Premium Life– Single premium life is essentially the same thing as traditional whole life, but the premium paying period is shorter. With single premium, you make one lump sum payment that typically secures you several times that amount in coverage. SPL policies have immediate cash value that starts to grow exponentially over time with tax-deferred benefits. Single premium policies may also offer other living benefits, such as long-term care.