How Whole Life Insurance Works

The purpose of Whole Life Insurance is to provide coverage for the insured during their entire lifetime. Whole Life Insurance is a consumer demanded product that offers more than just a death benefit by letting the policyholder build equity in the policy.

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What Is Whole Life Insurance

Participating whole life insurance is a proven, reliable place to store wealth that provides consistent protection and guaranteed growth for your entire lifetime when properly designed. Unlike other types of life insurance, it offers real financial security through:

1. Permanent coverage that truly lasts your whole life, not just until a certain age or as long as you can afford increasing premiums. Your death benefit remains intact as long as premiums and any policy loan interest are paid.
2. Fixed premiums that stay exactly the same year after year. You’ll never face the shock of your payments suddenly shooting up, which happens all too often with universal life and other products marketed as “permanent” insurance.
3. Guaranteed cash value that builds predictably over time as you pay premiums. This represents your equity in the death benefit – money you can access through policy loans while your policy continues growing. The cash value isn’t just a “side account” like with universal life – it’s a contractually guaranteed portion of the death benefit that you own.

How Whole Life Insurance Differs from Term Life Insurance

Term and whole life insurance serve different purposes. Here’s how they compare:

Coverage Duration:

• Term: Provides temporary insurance (1-30 years). 
• Whole Life: Provides insurance for your entire life.

Premium Structure:

• Term: Low initial premiums which increase exponentially to renew after the term ends. Many people let term policies lapse because renewal becomes unaffordable.
• Whole Life: Higher initial premiums that stay level, decrease or eventually stop altogether.

Cash Value:

• Term: Zero. Term Insurance is like renting, you have no equity.
• Whole Life: Builds guaranteed cash value you can access via policy loans.

What Happens at Age 70 or 80:

• Term: You’re likely uninsured. Most term policies lapse or become too expensive to renew when you are older and your health makes getting new coverage unfeasible.
• Whole Life: Your coverage continues guaranteed.

Best Use Cases:

• Term: Temporary needs like covering a mortgage, income replacement during working years or maintaining insurability with convertible term insurance.
• Whole Life: Permanent protection, estate planning, building accessible wealth, creating a private financing system and providing for retirement.

The Financial Reality:

Term insurance is cheap because most policies never pay out – people usually let term policies lapse due to the rise in premium cost after the term ends. Whole life insurance is guaranteed to be there for your entire life.  With whole life insurance you’re building an asset, not just paying for temporary protection.

Think of term insurance as renting an apartment and whole life insurance as buying a house – one keeps you covered short-term, the other builds equity you own.

Example Whole Life Insurance Rates:

These rate examples are for educational information and are not meant to be used as a quote for any specific individual or on behalf of any specific insurance company. The table above assumes a Standard Non-Tobacco health rate. The multi-colored tables below assume a Preferred Non-Tobacco health rate. Insurance products are backed by the claims paying ability of the issuing insurance company and are not FDIC insured. McFie Insurance LLC its agents, and representatives are not authorized to give investment, legal or tax advice.
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Pros and Cons of Whole Life Insurance

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The advantages:

• Your death benefit is permanent and guaranteed as long as premiums are paid.
• Cash value grows predictably with contractual guarantees – no market risk.
• You can access cash value through policy loans without surrendering coverage.
• Policy loans do not require special loan underwriting like a bank loan would.
• Death benefits can pass to beneficiaries tax-free (up to estate tax limits).
• Dividends from mutual companies can compound your growth (though they’re not guaranteed).
• The policy can’t be cancelled by the insurance company as long as you pay premiums.

The limitations:

• Cash value can build slowly in early years – this is a long-term strategy, not a get rich quick scheme.
• Not all whole life policies are created equal – non-participating policies and/or poorly designed policies can severely limit your benefits.

To get a properly designed whole life policy contact McFie Insurance

Paid Up Insurance

Equity implies ownership.  Equity is the value of an asset minus the liabilities associated with that asset.  A Whole Life Insurance policyholder builds equity in the policy as premiums are paid until the contract matures.  At maturity, the policyholder will own 100% of the death benefit and will have no obligation to pay premiums.  At this point, the policy is a “paid-up” policy.

Other insurance products provide for a death benefit to be paid if the insured dies while the policy contract is still in force. But the unique feature of Whole Life Insurance is that in addition to the death benefit provided, there is a provision made for the policy owner to actually own the death benefit. This provision, which is guaranteed by a legally binding contract, prevents the value of the Whole Life Insurance policy from being eroded by low interest rates and the ever-increasing cost of insurance to which typical Term and Universal Life Insurance contracts are subject.

Understand How Different Types of Life Insurance Work – Use link for Video Playlist (first video featured below)

The portion of the death benefit which becomes the personal property of the policyholder is called paid-up insurance.  As paid-up insurance is a legal asset, belonging to the policyholder, it is no longer merely a number promised by the insurance company, and can be used as cash equivalent by withdrawing that value from the policy or using that value as collateral for a loan.

Whole Life Insurance policies were developed because life insurance policyholders were not satisfied with purchasing life insurance on a month by month, or year by year basis, and never accruing equity.   Policy owners wanted to have an option to purchase life insurance with the opportunity to develop ownership because with ownership comes control. When Whole Life is paid up, the policyholder owns the death benefit and has no further obligation to pay premiums. 

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Cash Value Of Whole Life Insurance Policies

The cash value of a Whole Life Insurance policy represents the value of the paid-up insurance in the policy.  The cash value can be withdrawn from the policy at any time.

When a withdrawal is made from a Whole Life Insurance policy, the paid-up insurance, which the withdrawn cash value represents, is surrendered. This reduces the total death benefit by the amount of paid-up insurance that was surrendered.  Surrendered paid-up insurance reduces the death benefit, it also inhibits the future growth of a Whole Life Insurance policy because a withdrawal from a Whole Life Insurance policy can never be returned to the policy. The inability to return withdrawn money to a whole life policy decreases the value of the policy immediately but also limits long term compounding growth.

Policy Loans

In contrast to a withdrawal, a policy loan leveraged against the cash value of a Whole Life Insurance policy can be repaid to the insurance company.  Because a policy loan is not a withdrawal it does not affect the compounding growth of the policy like a withdrawal does.

A policy loan is a collateral assignment of a portion of the paid-up insurance, owned by the policyholder, to the insurance company. The insurance company holds the paid-up insurance as surety for the money it lends to the policyholder from the general fund of the insurance company.  This collateral prevents any value from being surrendered from the policy and allows compounding growth to continue based on the entire value of the policy.

Policy loans taken against the paid-up insurance portion of the death benefit in a Whole Life Insurance policy can be used for any purpose the policy owner desires as these loans are not regulated by any governmental regulations.  However, if a policy loan is outstanding against a Whole Life Insurance policy at the time the policy is surrendered or lapses, the loan will be treated as a withdrawal, which could result in a tax liability if the withdrawal is greater than the total premiums paid for the Whole Life Insurance policy (i.e., cost basis).

As a general rule Whole Life Insurance policy loans are not considered income and do not trigger a taxable event. This allows the owner of a Whole Life Insurance policy to leverage the cash values of their policy(s) to finance investments, transfer debt, or manage to create more value.  Here is an article with more in depth information about Life Insurance Policy Loans and Withdrawals and how and when to use them.

Using Whole Life Insurance for Private Financing Using Infinite Banking

Whole Life Insurance can be more than just protection and savings—it can also serve as a private financing tool, giving policyholders the ability to recapture interest they would otherwise pay to banks, credit cards, or finance companies.

This strategy is often referred to as the Infinite Banking Concept, and it relies on one foundational principle: using policy loans to finance major expenses or opportunities, while allowing your policy’s cash value to continue growing uninterrupted.

Unlike a withdrawal, a policy loan keeps your full cash value intact and compounding, even while you use the loan proceeds for things like:

• Paying off high-interest debt
• Funding a business or investment
• Making large purchases (vehicles, equipment, etc.)
• Managing cash flow or covering emergencies

Because the policyholder owns the paid-up insurance used as collateral, they control the loan terms—not a bank or lender. As long as the policy remains in force and loan interest is paid, there are no credit checks, repayment schedules, or restrictions on how funds are used.

Many of our clients use Whole Life Insurance this way to build their own personal banking system, reducing reliance on external financing and keeping more money working within their own household or business.

Do You Get both the Cash Value and the Death Benefit?

In the sale of Universal Life Insurance policies, a marketing pattern has developed which focuses on the fact that the beneficiary will receive both the cash value accumulation in the Universal Life Insurance policy as well as the death benefit. This is possible because the cash value accumulation in a Universal Life Insurance policy merely reflects the money that the policy has accumulated based on extra premiums that were paid for that policy as well as any interest that has been earned on those extra premiums.

With Whole Life Insurance, the cash value represents the paid-up insurance (equity) that the policyholder has established in their policy. The death benefit in a Whole Life Insurance policy already reflects the cash values whereas in Universal Life Insurance policies, the cash value accumulation is not a reflection of death benefit. it is merely a reflection of premiums that were overpaid and any interest that was earned on those overpaid premiums after expenses have been paid.

So, when a death benefit is paid from a Whole Life Insurance policy, if there is no loan against the paid-up insurance, the beneficiary receives 100% of the death benefit.  If there is an outstanding loan against the paid-up insurance of the policy, the beneficiary will receive the net amount of the total death benefit minus the outstanding loan balance.

When a death claim is filed against a Whole Life Insurance policy that has an outstanding loan the loan is repaid from the face value of the policy and the remaining portion of the face value becomes the death benefit that is paid to the beneficiary.

Either way, with or without a policy loan, 100% of the total death benefit is paid when a death claim is made against a Whole Life Policy.

How Whole Life Insurance Works 

Whole Life Insurance works because the insurance company assumes the risk of managing the premium dollars collected from the policyholder in exchange for providing a legally binding contract that provides a death benefit for the beneficiary of the policy.  That binding contract lasts for the lifetime of the insured if the the terms of the contract are met by the policy owner. It is called Whole Life Insurance because it provides life insurance coverage for the insured’s whole life.

Instead of an ever-increasing premium like those found in Term and Universal Life Insurance contracts, Whole Life Insurance premiums are fixed level premiums that do not increase during the lifetime of the insured.  Premiums can be reduced, or even stopped, in the future but the premiums cannot be increased.

The coverage provided in Whole Life Insurance is slowly converted to paid-up insurance which is fully owned by the policyholder.  Paid up insurance provides greater liquidity and control over the cash values of a policy.

The sooner paid up insurance is established in a policy, the faster the cash value in a Whole Life Insurance policy will accrue.  Keeping the growth of paid-up insurance within the guidelines of the Internal Revenue Code’s seven pay period will keep the policy from becoming a Modified Endowment Contract, and keep the policy’s growth from becoming a tax liability for the policyholder if the policy is ever surrendered, lapses or is borrowed against. Understanding how Whole Life works allows you to avoid tax liabilities. 

More on the Whole Life Insurance Death Benefit

The death benefit’s value is usually outlined in the insurance agreement, though there can be situations where it’s adjusted. Some policies qualify for dividend distributions, and the insured might decide to employ these dividends to procure additional paid-up coverage, augmenting the eventual payout upon death.

The payout received by beneficiaries isn’t taxed. However, various policy clauses or specific events can influence the death benefit. For instance, unsettled policy loans, along with accumulated interest, deduct from the death benefit on a one-to-one basis.

Several insurance companies provide optional add-ons, available for an additional charge, which ensure or solidify the coverage, encompassing the declared death benefit. Accidental death benefit and waiver of premium are two prevalent add-ons. They safeguard the death benefit, particularly if the policyholder faces severe illnesses or becomes incapacitated and fails to cover the premiums.

When it comes to receiving the death benefit, beneficiaries have options. The standard method is a one-time bulk payment. However, certain policies permit beneficiaries to opt for staggered payments or even transform the death benefit into an annuity. This annuity might provide payments for a predetermined duration or could last the beneficiary’s lifetime. The death benefit accrues interest until disbursed, and this interest might be subject to taxes.

Who Buys Whole Life Insurance

Life insurance proceeds are tax free for the beneficiary up to the gift tax limitations.  In addition to this, cash values grow tax-deferred in Whole Life Insurance policies.  In a survey taken by Limra (formerly Life Insurance and Marketing Research Association), 11% of people who purchase cash value life insurance do so not merely for the death benefit but also for the tax advantages.  Twenty-two percent of people purchase cash value life insurance for the ability to transfer wealth tax-free.  The Tax Foundation estimates that $1.68 billion was transferred by clients in 2010, tax-free, and nearly 40% of all such policies were sold with premiums of $20,000 or more annually.[i]

Whole Life Insurance And Dividends

Many Whole Life Insurance policies offer dividends to policy holders.  Dividends are paid to policy holders based on the profits the insurance company has earned over the past year.  Dividend rates are determined by the insurance company’s board and are paid annually to policy holders on the policy anniversary date of each participating policy.

Dividends are classified as a “return of premium paid” by the Internal Revenue Code and are not taxable if they are used to purchase more paid-up insurance.  If they are paid to the policyholder directly, they will be non-taxable but only as they remain less than the cost basis of the policy (the cost basis of a policy is the sum of total premiums paid). Dividends will only be considered income when total cumulative dividends exceed the cost basis of the policy.

Dividends are not guaranteed.  However, once a dividend is paid it becomes guaranteed and cannot be removed from the policy without the policy holder’s specific authorization.

Dividends may be used, at the policy holder’s discretion, to:

• Pay premiums
• Purchase additional paid up insurance
• Purchase term insurance
• Pay interest on a policy loan
• Pay principal on a policy loan
• Be paid directly to the policy holder

Uses of Whole Life Insurance

Whole life insurance, like other life insurance types, offers individuals and families a financial safety net in the event of a primary earner’s demise. If a family is dependent on one individual’s income, whole life insurance ensures monetary stability in the face of an unexpected loss.

However, a unique feature of whole life insurance compared to term life is its potential for investment. After amassing a substantial cash value, policyholders have the option to either withdraw from it or take a loan, facilitating significant expenses such as property acquisition. Many individuals even utilize the cash value from whole life insurance to bolster their retirement funds during unfavorable market conditions.

For businesses, whole life insurance serves as a protective measure in case a pivotal employee or associate passes away. Such a policy can counterbalance the financial impact resulting from the absence of their expertise. In situations where the deceased held ownership stakes, the insurance proceeds can equip surviving partners with the necessary funds to purchase the deceased’s share in the business.

Choose Whole Life Over Term Insurance When:

• You need permanent coverage 
• You want to practice Infinite Banking
• You want premiums that stay level instead of increasing dramatically at renewal

Choose Term Insurance Over Whole Life When:

• You need extra coverage for a specific period (like until your mortgage is paid off)
• Your budget is extremely tight and you need some coverage immediately

Choose Whole Life Over Universal Life When:

• You want guaranteed cash value growth
• You don’t want the risk of increasing insurance costs eating into your cash value
• You prefer contractual guarantees over flexible projections

Types of Whole Life Insurance

Whole life insurance comes in diverse forms, distinguished primarily by their premium payment structures:

• Level Payment: Here, the premium amount remains constant for the policy’s life span, making it the most prevalent choice.
• Single Premium: This involves a singular, substantial premium payment, ensuring the policy’s validity for its entire duration. However, it’s often regarded as a modified endowment contract, leading to specific tax implications.
• Limited Payment: As implied, this plan involves paying premiums for a restricted time frame. Even though these premiums might be steeper compared to the consistent premium model, they’re limited to a specific duration.
• Modified Whole Life Insurance: Contrary to the limited payment policy, this version starts with premiums lower than the standard for the initial few years, escalating to higher rates in subsequent years, eventually costing more overall.

Furthermore, whole life insurance policies can be classified into participating and non-participating models. In the non-participating format, any surplus from premiums compared to claims becomes profit for the insurance company.

How Returns and Performance Work in Whole Life

Understanding how your money grows in a whole life insurance policy requires knowing the difference between guaranteed and non-guaranteed elements.

Guaranteed Growth:

Every participating whole life policy has contractually guaranteed cash value growth spelled out in your policy documents. The insurance company cannot change these guarantees.

Your guaranteed cash value grows based on a guaranteed schedule of how premiums convert to paid-up insurance, and fixed mortality and expense charges. You know the minimum your policy will be worth at any future point, regardless of market conditions or company performance.

Non-Guaranteed Growth (Dividends):

Mutual life insurance companies may pay annual dividends to participating policyholders based on the company’s profitability.

Dividends aren’t guaranteed, but top mutual companies have paid them consistently for 100+ years, even through the Great Depression and 2008 financial crisis.

You can use dividends to purchase additional paid-up insurance, receive them as cash, pay premiums, or pay policy loan interest.

Real Performance Over Time:

A properly designed participating whole life policy typically shows:

• Year 1-3: Cash value builds slowly due to initial costs
• Year 4-9: Cash value growth accelerates 
• Year 10+: Cash value often exceeds total premiums paid

The Power of Uninterrupted Compounding:

The biggest advantage is that your cash value compounds uninterrupted, even when you borrow against it. If you have $100,000 in cash value and take a $50,000 policy loan, the full $100,000 continues growing. You’re paying loan interest, but you’re not losing the compound growth on that $50,000.

Over 20-30 years, this uninterrupted compounding makes a substantial difference in total wealth accumulation.

What Affects Your Policy’s Performance:

• Policy design (high cash value vs. high death benefit focus)
• Paid up additions
• Premium payment consistency
• Policy loan management
• The insurance company’s dividend history

The bottom line is whole life insurance provides guaranteed, tax-advantaged, accessible growth with a death benefit.

Understanding The Whole Life Insurance Approval Process

There are important distinctions between the approval methods that can significantly impact your policy’s performance and cost:

1. Fully underwritten participating whole life insurance requires the most thorough evaluation – including a medical exam and detailed health history. While this may seem inconvenient, it actually works in your favor. By allowing the insurance company to properly assess risk, you get access to the strongest guarantees and most competitive premiums. This is the type of policy we typically recommend to build sustainable wealth.
2. Simplified issue policies skip the medical exam but still require health questions. While this might seem appealing, you’ll pay more in premiums for less coverage. The insurance company charges higher rates to offset the increased risk of not fully evaluating your health.
3. Guaranteed issue policies sound attractive since there’s no health screening whatsoever. However, we rarely recommend these because they come with serious drawbacks – extremely high premiums, very limited death benefits, and strict limitations on payouts in the early years. They should only be considered as an absolute last resort if you can’t qualify for standard coverage.

For most people looking to use life insurance as a financial tool, a fully underwritten participating whole life policy will provide the best value and strongest guarantees. Even if you have some health issues, going through proper underwriting often results in better premiums than trying to avoid medical evaluation.

What Makes Whole Life Insurance Participating vs Nonparticipating?

Not all life insurance companies that sell Whole Life Insurance pay dividends to policy owners.  If a company does not pay dividends to Whole Life Insurance policy owners, the policy is considered a non-participating Whole Life Insurance policy.

Participating Whole Life Insurance policies, offer dividends to their policyholders.  Participation in the dividends of a life insurance company can significantly increase the cash values and the total death benefit in a Whole Life Insurance policy over time.  Most Life Insurance Companies that offer participating policies are mutually held Life Insurance Companies instead of stock held Life Insurance Companies.

Fees

All insurance policies have fees associated with them. When it comes to how Whole Life insurance works, the fees associated with the policies are fixed and flat; they are already included in the price of the premium for the policy.  This is different from Universal Life Insurance policies which have a premium fee that is based on a percentage of the premium paid (This is called a front load).  Because of the flat fee in a Whole Life Policy the larger the premium the smaller the fee will be as a percentage of premiums paid.  In Universal Life Insurance, the higher the premium paid, the greater the fee will become since the fee is based on a percentage of total premiums paid.

For example, compare the fee of a Whole Life Policy vs. a Universal Policy on a $10,000 annual premium:

• Whole Life: A flat, fixed fee of $75, this is 0.8% of the total premium
• Universal Life: A 6% fee is $600 of the total premium

If the premiums are increased to $20,000 annual premiums here’s how the fees are affected:

Whole Life: A flat fixed fee of $75, this is 0.4% of the total premium
Universal Life: A 6% fee is $1200 of the total premium

Read more about participating whole life insurance here.

Whole Life Insurance is an asset purchase that builds equity and provides a guaranteed death benefit.  Whole Life Insurance is a financial tool that can be used to build wealth, provide liquidity and legally avoid certain income and estate taxes.  Whole Life Insurance is a solid and secure financial tool with high consumer demand and is used by individuals, families, business owners and companies to keep more of the money they make, grow their wealth and have financial peace of mind.

Common Misconceptions About Whole Life Insurance

Let’s clear up the most common misconceptions about whole life insurance:

Misconception #1: “Whole life insurance is a bad investment”

Whole life insurance is a guaranteed-growth financial tool with a death benefit. Whole life insurance is a guaranteed foundation for financial success. Watch video

Misconception #2: “You should buy term and invest the difference”

This advice rarely works in practice. Many people don’t actually invest the difference – they spend it. Those who do invest face market risk, taxes on gains, and no life insurance coverage once the term expires. Term insurance becomes prohibitively expensive to renew after age 60 or 70, right when you’re more likely to need coverage. “Buy term and invest the difference” works great for financial advisors selling managed investment products, but it leaves many people uninsured in their later years.

Misconception #3: “The returns are terrible”

Whole life insurance provides excellent guaranteed growth on your money, allowing you to have financial peace of mind. Investments in the market are not guaranteed and even a positive rate of return can lose money. Watch Video

Misconception #4: “It’s too expensive”

Premiums are higher upfront, but they never increase, unlike term insurance renewal rates. Over your lifetime, whole life insurance is much more cost effective than term insurance.

Misconception #5: “You lose money if you borrow from your policy”

Policy loans don’t remove money from your policy, they use the death benefit as collateral. The full cash value continues growing guaranteed and earning potential dividends even while you have a loan outstanding. You’re paying loan interest, yes, but your cash value keeps growing. This is fundamentally different from a withdrawal, which actually surrenders cash value and reduces your death benefit permanently.

Misconception #6: “Universal life insurance is basically the same thing”

Universal life and whole life are completely different products. Universal life is built off of renewable term insurance with a cash accumulation side account. The cost of insurance increases every year, which will drain your cash value over time and force you to pay higher premiums later or risk the policy lapsing. Whole life has fixed premiums and guaranteed cash value growth which will reach the total amount of death benefit at the policy’s maturity date.

Many misconceptions about whole life insurance come from comparing it to the wrong things or from agents who don’t understand (or don’t sell) properly designed participating whole life policies. When you understand what whole life actually does (provides permanent coverage with guaranteed growth and access to capital) you can evaluate it based on what it is, not what people mistakenly think it is.

Alternative To Whole Life Insurance:

When it comes to protecting your family and building sustainable wealth, don’t be fooled by common financial advice suggesting term insurance is “good enough” or that universal life provides meaningful flexibility.

Term insurance is marketed as an affordable solution, but this temporary coverage becomes a liability as you age. You’ll face skyrocketing premiums if you try to maintain coverage after the initial term ends. Even worse, you’ve paid years of premiums with absolutely nothing to show for it – no cash value, no living benefits, just money gone forever.

Universal life insurance might sound appealing with its “flexible” premiums and death benefits. But this flexibility is actually dangerous – it’s built on one-year renewable term insurance with an ever-increasing cost that can drain your cash values and force you to pay much higher premiums later just to keep the policy in force. The guarantees are weak or non-existent.

Is Whole Life Insurance Right for You?

Whole life insurance makes sense for specific situations and goals. Here’s when it’s worth considering:

You’re a good candidate if:

• You need permanent life insurance coverage that won’t expire or become unaffordable as you age
• You want guaranteed growth without stock market risk
• You want to create your own financing system for major purchases or investments
• You have estate planning needs or want to leave a guaranteed inheritance
• You own a business and need funding mechanisms for buy-sell agreements
• You’re a high-income earner looking for tax-advantaged wealth storage
• You have a long-term mindset.

You’re probably not a good candidate if:

• You only need additional temporary coverage for a few years
• You’re looking to get rich overnight.
• You don’t understand how the policy works and aren’t willing to learn

The people who benefit most from whole life insurance are those who understand they’re building a financial asset, not just buying insurance. They view it as part of a broader wealth-building strategy, not just a death benefit for those left behind.

How to Find the Right Whole Life Insurance Policy

Here’s what you need to know to make an informed decision:

Policy Design Matters

You must understand exactly what you’re purchasing. A well-designed participating whole life policy will maximize cash value while minimizing the death benefit – providing both the protection your family needs and a powerful financial tool you can use during your lifetime. Many agents won’t design policies this way since it reduces their commission, but we prioritize your financial success.

Understanding Riders

Your policy should include key features that enhance its value. The accelerated death benefit rider allows access to funds if you become chronically or terminally ill. The waiver of premium rider protects your policy if you become disabled. We’ll help you understand which riders provide real value versus unnecessary costs.

Cash Value Growth and Guarantees

Unlike universal life or other products with weak guarantees, participating whole life insurance provides contractually guaranteed cash values that grow predictably over time. This represents your equity in the death benefit – money you can access through policy loans while your policy continues growing.

When you work with a mutual insurance company, you may also receive dividends – though these aren’t guaranteed. What matters more are the guaranteed values built into your contract. 

Don’t Buy Without Understanding

Too many people purchase life insurance without fully grasping how it works. Schedule a strategy session with us to learn how we can help design a participating whole life policy that will truly serve your financial goals. We’ll explain exactly how the policy works, what’s guaranteed, and how to use it as a powerful financial tool.

How Much Does Whole Life Insurance Cost?

The pricing of whole life insurance is influenced by numerous considerations, including one’s age, profession, and medical background. Rates tend to be higher for older individuals compared to the younger ones. Those with an impeccable health record often get more favorable rates compared to those with past health issues.

The sum insured or coverage value also plays a role in determining the premium; a higher coverage value translates to a higher premium. Moreover, some insurers charge more than others, irrespective of the individual and their associated risks. It’s pivotal to highlight that, for identical coverage amounts, whole life insurance usually costs more than term life insurance.

To buy life insurance with McFie Insurance, call the office at: 702-660-7000 or email: [email protected]

[i] https://www.marketwatch.com/story/10-things-life-insurers-wont-tell-you-1308333194735

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