Whole Life Insurance

Whole life insurance protects for your whole life. The premiums in whole life insurance usually do not increase each year and your premium stays leveled. The premiums can be spread out over your lifetime, or up till a certain age. Some policies also build cash value, which is a return on invested portion of your premium. Your cash value is tax-deferred until you withdraw it and you can borrow against it.
Whole life products are categorized into Guaranteed Whole Life and Adjustable Whole Life. A Guaranteed Whole Life gives you a guaranteed minimum rate of return on your cash value portion and an Adjustable Whole Life policy gives a variable rate of return on your cash value portion, similar to an adjustable mortgage rate.

Benefits :

• Builds cash value which is a portion of your premiums
• Premiums remain constant till the end of the policy
• More flexibility compared to Term to 100

Drawbacks:

• Higher premiums
• Long term commitments