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Whole life insurance is a type of permanent life insurance that provides coverage for your entire life and includes a cash value component that grows over time.
In Depth
Whole life insurance offers lifelong coverage, meaning it doesn't expire as long as premiums are paid. A portion of your premium goes into a cash value account that grows over time on a tax-deferred basis. You can borrow against this cash value or withdraw from it. Premiums typically remain level throughout the policy's life.
Example
John purchased a whole life insurance policy to ensure his family would be financially protected after his death, and he also liked the idea of building cash value he could access later.