Whole life insurance policies typically have higher premiums than term life insurance policies, but they offer the peace of mind of knowing that your beneficiaries will receive a payout upon your death, regardless of when that may occur. They can also provide an additional source of savings or investment, depending on the performance of the policy's cash value component.
In addition to providing a death benefit to the policyholder's beneficiaries upon their death, whole life insurance policies also have a cash value component that grows over time. This cash value can be borrowed against or withdrawn by the policyholder while they are still alive, although doing so can reduce the death benefit.
Whole life insurance is a type of life insurance policy that provides lifelong coverage, as long as you pay the premiums. Unlike term life insurance, which only provides coverage for a specific period of time, typically between one and 30 years, whole life insurance policies remain in force until the death of the policyholder.
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