| 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 |