{"id":510643,"date":"2023-02-09T16:15:49","date_gmt":"2023-02-09T16:15:49","guid":{"rendered":"https:\/\/fidelitylife.com\/?p=510643"},"modified":"2023-02-09T16:15:49","modified_gmt":"2023-02-09T16:15:49","slug":"whole-life-insurance-for-adults","status":"publish","type":"post","link":"https:\/\/staging03.wordpress.fidelitylife.com\/?p=510643","title":{"rendered":"Whole Life Insurance For Adults"},"content":{"rendered":"

Life insurance can help you support the people who matter most once you\u2019ve passed away. Your death benefit could pay for your funeral, cover your family\u2019s daily needs, or provide an inheritance. While term life insurance is an affordable option for families on a budget, over half of people who own life insurance choose permanent coverage, according to LIMRA\u2019s 2022 insurance barometer study<\/a>.<\/p>\n

If anyone depends on your income indefinitely, like a spouse or other family member who can\u2019t work, or if you want to leave behind a legacy at any age, whole life insurance may fit your circumstances. Read on to learn whether whole life insurance could be the right choice for you.<\/p>\n

What is whole life insurance and how does it work?<\/h2>\n

Whole life insurance<\/a> is the most common type of permanent life insurance. Whole life lasts through the end of your life as long as premiums are paid. If you take out a whole life insurance policy, you identify a beneficiary<\/a> who will receive a lump sum death benefit when you pass away.<\/p>\n

Whole life policies also accrue cash value over time. You\u2019ll pay a monthly premium that goes toward both the policy\u2019s death benefit and cash value component. Then, the cash value accrues interest, sometimes at a guaranteed rate of return, depending on your policy. During your life, you can borrow against that cash value or make a withdrawal (with some potential tax implications). Any amount you don\u2019t repay is subtracted from the death benefit, meaning there\u2019s less money to support your beneficiaries.<\/p>\n

To keep your policy active, you must continue paying premiums. Unlike some other types of permanent life insurance, whole life insurance premiums remain level throughout the policy\u2019s lifetime. Cash value interest rates likewise remain level, so your cash value has guaranteed growth.<\/p>\n

What is the difference between whole and term life insurance?<\/h3>\n

Term life insurance is the other major category of life insurance people purchase. Term life and whole life have two primary differences.<\/a> Unlike whole life, term life insurance provides coverage for only a fixed period, usually between 10 and 30 years. After that time, your coverage ends unless you apply for a new policy or renew your existing one<\/a>. In addition, term life insurance does not accumulate any cash value. For these reasons, term life insurance usually costs less than whole life insurance, even if the death benefits are equal.<\/p>\n

What are the benefits of whole life insurance for adults?<\/h2>\n

While whole life insurance comes at a relatively high premium, its advantages<\/a> may be worth the cost for certain adults. Some reasons to consider whole life insurance include the following:<\/p>\n