Whole Life insurance

Whole Life Insurance

Whole Life Insurance goes the extra mile to help you provide lifelong financial protection for your family — the people in your life who count on you the most. This permanent protection can help bring peace of mind knowing that you’re looking out for your family’s well-being and keeping their dreams moving forward.

What is Whole Life Insurance?

Whole Life Insurance is exactly what it sounds like — protection for your whole life. This means you’re guaranteed permanent life insurance coverage* and your beneficiaries will receive a death benefit regardless of when you pass away.

How Does Whole Life Insurance Work?

Whole Life Insurance helps financially protect your family if you were to die. Here’s a high-level look some of the ways Whole Life Insurance can benefit you and your loved ones:

Long-term protection. Having a Whole Life policy means you will have lifelong coverage. This means when you pass away, your beneficiaries will receive a death benefit that they can use for things like your final expenses, income replacement, paying off debts or continuing their current standard of living. Find out more about how life insurance protects your family.

Accumulates cash value. Permanent coverage, like our Whole Life Insurance, builds cash value that you can borrow against. For instance, you might choose to borrow against your cash value to help with things like a down payment on a house or paying for college tuition. Keep in mind, any loans and unpaid interest outstanding at time of death will be deducted from the death benefit at the time of claim, and the policy could terminate if the loan balance grows too large for the cash value to support it.

No surprises. Your premiums won’t increase regardless of age or health changes. That means no surprises and no increased financial burden with life changes.

Dependable coverage. Our Whole Life coverage offers 10-, 20- and 30-year payment options, which means you won’t have to pay any more premiums after this time period and your premiums will never increase. We also offer a Whole Life 100 policy which allows you to spread the guaranteed premiums out until age 100.

May pay dividends. Dividends are not guaranteed. But when paid, you can use dividends (which accumulate with interest) to purchase additional coverage, reduce premiums or they can be paid to you in cash.

Term vs. Whole Life Insurance

Though both coverages help financially protect your family, you’ll want to consider the benefits of having coverage that lasts a lifetime, compared to temporary coverage that exists only for a specific amount of time.

Term life insurance is temporary coverage that lasts for the term of your policy, usually in 10-, 20- or 30-year terms, which is great to have if you still have financial obligations and people who depend on you financially. But, your beneficiaries will only receive the death benefit if you pass away within the time in which you are covered. Whole Life Insurance, in contrast, is permanent coverage that lasts for your entire life, guaranteeing a death benefit*, and has living benefits like cash value that you can borrow against**.

Converting Term to Whole Life

Some policies have the option to convert term life coverage to whole life coverage. A convertible insurance policy, like American Family’s Term Life coverage, allows you to convert* a portion or all of your existing term life policy to a permanent policy during the conversion eligibility period. The perk? You can do this without having to take a medical exam or go through other screening that could affect your eligibility. This conversion option delivers the benefit of having a less expensive term life insurance policy to begin with (compared to a permanent policy), while still being able to convert to a permanent policy later if your insurance needs and financial means change.

Whole vs. MyLife Flexible

Both Whole Life Insurance and MyLife Flexible Insurance offer permanent protection. However, MyLife Flexible Insurance actually combines some features of both temporary and permanent life coverage and gives you the flexibility to change your policy as your life changes. With the ability to modify payments, coverages and terms, you can customize your coverage as your income and family responsibilities grow and change through the years.

Customize Your Policy

American Family Life Insurance Company offers a number of additional coverages that you can purchase to build a life policy that suits your needs. Here are some of the additional coverages available*:

Children’s Insurance Rider: Provides $10,000 worth of coverage on natural, adopted and step children.

Guaranteed Purchase Option: Allows the purchase of extra permanent life insurance without medical questions or an exam at specified dates and life events.

Waiver of Premium Benefit Rider: Waives premiums if the insured becomes totally disabled.

Accidental Death Benefit Rider: Provides your beneficiary with an additional death benefit, up to $100,000 if death occurs from accidental death as defined in the rider.

In addition to the coverages available for purchase mentioned above, each policy automatically comes with an Accelerated Death Benefit option (to be added at time of need). This benefit allows the policy owner to collect a part of the death benefit under certain conditions if the primary insured is diagnosed with a terminal illness.***

Are you ready to take the next step in planning your family’s financial future? Contact your American Family Insurance agent to find customized life insurance coverage that helps protect what matters most.

*Subject to policy and rider terms and conditions, including items like plan minimums and timely payment of premiums.
**Disclaimer: Any loans taken from your life insurance policy will accrue interest. An outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim. If the loan balance grows too large for the cash value to support it, the policy could terminate.
*** Exercising the Accelerated Death Benefit option may have tax consequences and could impact qualification for government benefits.
Policy Form L-33, Policy Form L-34, Policy Form L-35, Policy Form ICC 13-97 UL, Policy Form L-97 UL (AZ, ND, SD only), Policy Form L-24 (10), Policy Form L-24 (20), Policy Form L-24 (30), Policy Form L-60, Rider Form L-CI-1 (TRAD), Rider Form L-96 (TRAD), Rider Form L-11W, Rider Form L-9A, Rider Form L-ACDB (WL)