The cost to insure you may vary at different ages. When you pay your premiums for your whole life insurance policy, part of that money is used to cover the cost to insure you. With whole life insurance, you pay the same consistent, guaranteed premiums and when you pass away, your beneficiaries will receive a predetermined death benefit. Learn more about the difference between term versus whole life insurance and whole versus universal life insurance.
Since you are covered for your entire lifetime, whole life insurance usually has a higher premium overall. The whole life insurance premiums stay the same for your entire lifetime, unlike term life premiums which increase upon renewal at the end of the initial term. Unlike term life insurance which covers you for a specific duration or term (10, 20, or 30 years, etc.), a whole life insurance policy is in force until you pass away. However, there are also other products that fall under permanent insurance (insurance that lasts your entire life) such as term-to-100 and universal life insurance. This type of insurance is often used as a catchall phrase in the industry to refer to permanent insurance. Whole life insurance is a special type of permanent insurance where you have lifelong coverage, guaranteed and consistent premiums, and the feature that makes it stand apart-the ability to access additional funds during your lifetime. It gives your beneficiaries a tax-free payment regardless of when the claim happens. Whole life insurance, like the name implies, is an insurance contract that covers you for your entire life-as long as you pay your premiums.
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