Whole (ordinary) life
Cash Value Policies: Whole (Ordinary) Life
Description Premiums Cash Value Advantages Disadvantages Uses
Guaranteed at-death proceeds; Guaranteed lifetime benefits Level, payable usually to age 95 or 100 Guaranteed build-up participating policies may have build-up beyond amounts guaranteed Forced savings element; Fixed premiums; Low-rate loans; Guaranteed cash values; Income tax advantages Rates higher than term Insured may not be able to afford adequate coverage; Investment return usually marginal Lifetime need for insurance; Client prefers fixed, guaranteed investment return