Series 6: 6.3.2. Whole Life Insurance

Taken from our Series 6 Online Guide

6.3.2. Whole Life Insurance

Whole life insurance is an insurance product that has an insurance component and an investment component. Because of this additional benefit, it is much more costly than term life insurance. The purchaser pays set premiums, which are locked in over the life of the insured, and the insurance company guarantees a minimum amount of payout upon death. With whole life insurance, insurance companies guarantee the recipient a minimum cash value even if the recipient stops paying into the policy. Like an annuity, it protects the beneficiary in the event of the insured

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