FAQ - Whole Life or Cash Value Policies

Whole life insurance is a permanent level of insurance protection.

It is in effect from the policy issue to the death of the insured. This type of life insurance carries level premiums, level benefits and cash values. Whole life insurance combines insurance protection with a savings element. The policy’s cash value builds, increasing each year the policy is in force. This is often referred to as the "cash surrender value". The amount of the policy’s cash value depends upon 3 factors:


  1. The face amount of the policy.
  2. The duration and amount of the premium payments.
  3. How long the policy has been in effect.


Whole life insurance was designed to mature at age one hundred. The number 100 is an actuarial assumption, because every insured is presumed to be dead by then. For those who are lucky enough to live to age 100, the company will issue checks for the full value of the policy. Another benefit of whole life insurance is the fact that the policy owner has access to a ready source of funds that he can borrow at reasonable rates.