Guarantees – Whole life insurance provides three
• A guaranteed level death benefit (guaranteed
• A guaranteed level annual premium and premium
payment period; and
• Guaranteed increases in cash value.
Permanent life insurance protection – Whole life is
designed to provide permanent life insurance protection.
As long as the premiums are paid, the beneficiary is
guaranteed to receive the policy face amount at the death
of the insured.
Cash value – Your policy builds guaranteed cash value over
time which increases each year and will never decline in
value due to changes in market conditions. The cash value
that your whole life policy builds over time is an integral
part of the product design, which provides lifetime coverage
with guaranteed level premiums.
People buy different types of insurance policies to help protect themselves against the financial loss or
liability that may result from an unexpected event. Home owners and auto insurance are good examples.
These types of policies provide financial protection against losses due to certain risks. However, their
value is limited to the coverage that they provide over a specific period of time.
The following diagram illustrates how the basic guaranteed
elements fit together for a typical whole life policy, where
the level annual premiums are payable to age 100, and
the guaranteed cash value grows to equal the policy face
amount at age 100:
Whole life policy guarantees
Guaranteed face amount
Age at issue Age