A life insurance policy designed to protect the policyholder from premature death for life.
The oldest form of cash value insurance, whole life insurance, is best purchased when you’re young and retained your entire life. Its premiums remain level as long as your policy is kept up-to-date and in effect. But if it lapses due to non-payment-or you cancel it-premiums may increase should you choose to renew or repurchase it.
This type of coverage also allows you to accumulate savings, which can be used any way you see fit. For example, you may choose to use whole life insurance funds to help educate your children, pay off your home, or help support an elderly parent.