Whole Life Guarantees Simplify Planning

Another common question is: "How does whole life work?" The answer begins with three basic elements of a whole life insurance policy:

1. Death Benefit - The amount that a beneficiary receives upon the death of the insured person. The death benefit starts out being the "face amount" of the whole life policy, but may increase over time as the internal values grow.
2. Premium - The payment you make periodically to maintain the policy. With whole life, these payments are established at issue and predictable throughout your lifetime.
3. Cash Value - A systematic tax-advantaged accumulation of value built into the policy from each premium payment made.