This type of policy has guaranteed premiums and are payable according to the selected payment plan. The protection provided by this type of policy is known from the onset of the contract with regards to the guaranteed death benefit that will be received by your beneficiaries. Some policies are paid up to a specific age or a set amount of time such as a 15 or 20 year pay period.
This whole life product gives you the opportunity to participate in the insurance company's profit by way of dividends. The dividends can be used a few different ways such as:
This whole life product provides you the guaranteed death benefit and premiums without the opportunity to have dividends. There is a cash surrender value built into this type of policy and in some the option to make additional deposits to build the cash surrender value up. The growth rate within a whole life policy is usually very similar to long-term GIC's and is guaranteed.