Whole Life
Whole Life Insurance is a form of permanent life insurance that remains in force for your entire lifetime, provided premiums are paid as specified in the policy. A whole life policy is the simplest form of permanent life insurance Unlike term life, it’s not a “pure life insurance” product because it includes a cash value component.
A policy has cash value when a portion of your premium dollars are invested and this sum grows over time on a tax-deferred basis, so you don’t pay taxes on the gains. A policy’s cash value provides a number of benefits that you can use while you’re still alive. It takes a few years to grow into a useful amount, but once that happens you can borrow money against your policy’s cash value in the form of loans or withdrawals, use it to pay your premiums, or even surrender it for cash to supplement you in retirement