Whole Life Insurance

Whole life insurance provides both protection and cash value. You may want this type of coverage if the cash value may benefit you while you're still living. You can always use this supplement to help support your children’s education or for retirement funds. Bottom line is it's your money so use it as you need it. But, make sure you’re not buying whole life insurance solely for accumulation because protection should be your primary purpose for purchasing life insurance. Note that withdrawals and/or loans will decrease the death benefit.

The premiums remain at a fixed level for the length of the contract. Over time, the policy usually builds up cash value on a tax-deferred basis.

Many companies pay policyholders a dividend. Dividends provide both flexibility and increased value to your life insurance policy. They can add more coverage to your overall insurance benefit and can build a sizable cash value.