Whole Life Insurance
Permanent coverage with a guaranteed cash value component.
What is Whole Life Insurance?
Lifetime coverage with a level premium and a cash value that grows on a guaranteed schedule and can be borrowed against. Far more expensive per dollar of death benefit than term. Legitimate uses are estate liquidity, special-needs planning, and permanent needs - not as a first-line retirement vehicle.
Whole Life Insurance: a worked example
The same $1M of coverage might run $800+ a month instead of $40.
More terms in Planning, Insurance & Estate
Emergency Fund
Liquid reserves covering several months of essential expenses.
Net Worth
Total assets minus total liabilities.
Term Life Insurance
Pure death benefit for a fixed period, no cash value.
Disability Insurance
Income replacement if illness or injury prevents you from working.
Long-Term Care Insurance
Covers extended custodial care that health insurance and Medicare do not.
Will vs. Revocable Trust
Directs assets through probate versus holding them outside probate.
Beneficiary Designation
Account-level instructions that override the will.
Probate
The court process validating a will and distributing an estate.