Whole Life Insurance

Last updated: December 9, 2025 Recently updated

Whole Life Insurance Guide

Permanent coverage with guaranteed death benefit and cash value growth

Not sure what coverage you need? Take our free 2-minute quiz to get personalized insurance recommendations.

What is Whole Life Insurance?

Whole Life Insurance provides essential protection for you and your family. Understanding how it works helps you make better coverage decisions.

Key Features

Coverage details and benefits
What’s typically included
Common exclusions to be aware of
Cost factors that affect premiums

Who Needs Whole Life Insurance?

Learn whether this type of coverage is right for your situation and how to determine the appropriate coverage amount.

How to Choose a Policy

Tips for comparing policies, understanding terms, and finding the best value for your needs.

Retiring Checklist - Whole life as part of estate planning
Getting Married Checklist - Long-term life insurance decisions

Life Insurance Needs Calculator - Calculate your coverage needs

Term Life Insurance - Affordable temporary coverage alternative
Universal Life Insurance - Flexible permanent coverage alternative

Frequently Asked Questions

Common questions about whole life insurance answered.

Data Sources

Whole life insurance data in this guide come from LIMRA (opens in new tab) , ACLI (opens in new tab) , NAIC (opens in new tab) , and insurer rate filings. Learn more about our data collection methods on our Methodology page.

Frequently Asked Questions

What is whole life insurance cash value?

Whole life insurance builds cash value over time that grows tax-deferred at a guaranteed rate. You can borrow against this cash value, withdraw it (which may reduce death benefit), or surrender the policy for the cash value. Cash value accumulates slowly in early years and grows faster over time.

Is whole life insurance a good investment?

Whole life insurance is primarily protection, not an investment. The cash value growth rate is typically modest (2-5%) and fees are high compared to investment alternatives. It makes sense for specific purposes: estate planning, leaving a guaranteed inheritance, or forced savings. For most people, ‘buy term and invest the difference’ is more efficient.

What are whole life insurance dividends?

Participating whole life policies from mutual insurance companies may pay dividends when the company performs well. Dividends aren’t guaranteed but can be used to reduce premiums, buy additional coverage, accumulate with interest, or receive as cash. Dividend history varies by company.