Whole Life Insurance with Cash Value
Over 100 Carriers to Quote From. Here are a few of them!
Whole life insurance with cash value provides permanent protection, guaranteed level premiums, and a built-in savings component that grows every year. It’s ideal for families who want lifetime coverage plus liquid, tax-advantaged value they can access for opportunities or emergencies—without market volatility.
Compare Whole Life Quotes & Cash Value Options
We’ll scan 100+ carriers and show premiums, guarantees, and rider choices that fit your goals.
Life Insurance Quoter
How Whole Life with Cash Value Works
- Permanent Protection: Coverage lasts for life as long as premiums are paid (or once the policy is paid-up).
- Guaranteed Elements: Level premiums, guaranteed death benefit, and guaranteed cash value accumulation are built in.
- Dividends (if declared): Participating carriers may pay dividends you can take in cash, reduce premiums with, or use for paid-up additions (PUAs) to accelerate growth. Dividends are not guaranteed.
- Liquidity: Access cash value via policy loans/withdrawals (reduces values/benefits; may have tax implications).
- Tax Advantages: Cash value grows tax-deferred; death benefit is generally income-tax-free to beneficiaries.
Who It’s Best For
- Families who want lifetime coverage with predictable, level costs
- Savers seeking guaranteed accumulation and potential dividends
- Business owners building a liquid reserve without market swings
- Estate planners needing tax-efficient legacy and liquidity
Popular Riders & Customization
- Paid-Up Additions (PUA): Boosts cash value and death benefit faster.
- Term Blend Rider: Adds low-cost term coverage now while building whole life over time.
- Waiver of Premium: Keeps your policy in force if you meet disability criteria.
- Chronic/Terminal Illness Accelerated Benefits: Access a portion of the benefit under qualifying conditions.
- Children’s Term Rider: Affordable child coverage with future conversion to permanent insurance.
Illustrative Case Example
Profile: 40-year-old professional allocates $5,500/yr to a participating whole life policy.
- Years 1–5: Guaranteed cash value builds; dividends (not guaranteed) buy PUAs to compound growth.
- Year 10: Uses a modest policy loan to fund a business opportunity; policy stays in force.
- Long-Term: By retirement, accumulated values can support tax-advantaged income via policy loans, while maintaining a death benefit for heirs.
Loans/withdrawals reduce cash value and death benefit and may cause a taxable event if the policy lapses or is surrendered. Dividend scales change over time. We provide side-by-side carrier illustrations before you decide.
Whole Life vs. Other Options
Term life offers the lowest initial cost for temporary needs; universal life variants provide flexible premiums and different crediting methods. If you’re deciding which structure fits best, start here:
How to Get Life Insurance.
Ready to See Your Cash Value & Premium?
We’ll compare quotes from 100+ carriers and tailor riders to your goals.
Questions? Call 800-533-5969 or
FAQs: Whole Life Insurance with Cash Value
What is whole life insurance with cash value?
Whole life insurance is a permanent life policy that covers you for your entire life (as long as you keep paying premiums). Part of each premium goes into a savings (cash value) account, which grows over time.
How does the cash value grow?
The cash value grows via guaranteed interest rates (often set by the insurer), dividends (for participating policies), or other credited rates depending on policy design. Growth is tax-deferred. :contentReference[oaicite:0]{index=0}
What can I do with the cash value while I’m alive?
You can typically borrow against it, withdraw part of it, or sometimes use it to pay premiums. Be aware: loans or withdrawals may reduce the death benefit or come with interest. :contentReference[oaicite:1]{index=1}
When does the policy build enough cash value to use?
Usually it takes several years—often a decade or more—for cash value to build up to a meaningful amount. Early years are primarily paying cost of insurance + fees. :contentReference[oaicite:2]{index=2}
How is whole life different from term life?
Term life is coverage for a set period (10-30 years) and has no cash value. Whole life offers lifelong coverage and includes cash value. However, whole life premiums are much higher. :contentReference[oaicite:3]{index=3}
Do whole life policies always pay dividends?
No. Only participating whole life policies typically pay dividends (based on insurer profits / performance). Dividend payments are not guaranteed. Non-participating policies will not. :contentReference[oaicite:4]{index=4}
Are there tax benefits to whole life insurance?
Yes. The death benefit is generally paid income-tax-free. The cash value grows tax-deferred, meaning you don’t pay taxes on the gains while inside the policy unless you withdraw or surrender. :contentReference[oaicite:5]{index=5}
What are the drawbacks or trade-offs?
Main drawbacks include higher premiums (vs term life), slower cash value growth early on, complexity, potential surrender charges, and less flexibility. :contentReference[oaicite:6]{index=6}
What happens to the policy if I stop paying premiums?
If you stop paying, the policy may lapse (expire) unless there’s enough cash value to cover costs (if the policy allows it). Loans outstanding or fees may reduce the cash value. :contentReference[oaicite:7]{index=7}
How do I decide if whole life with cash value is right for me?
Consider your financial goals: do you want lifelong coverage, savings/investment component, ability to access cash value, estate planning, etc.? Also assess whether you can afford higher premiums and whether other investments might serve better depending on your situation. Comparing term vs. whole life cost + benefits will help. :contentReference[oaicite:8]{index=8}
