Whole Life Insurance

Whole life insurance is a type of permanent life insurance that provides a guaranteed death benefit for the insured's entire life, as long as premiums are paid, along with a cash value component that grows over time.

Unlike term life insurance (which covers a fixed period), whole life insurance does not expire. The policy builds guaranteed cash value according to the schedule in the contract, and on participating policies issued by mutual companies, dividends add additional growth.

For whole life banking practitioners, the key features are:

• Guaranteed, tax-deferred cash value growth — the policy contract specifies minimum growth
• Policy loan access — cash value can be used as collateral for loans at any time
• Uninterrupted compounding — borrowing against cash value does not interrupt its growth
• Death benefit — transfers wealth to beneficiaries income-tax-free

Policy Stack is designed specifically for whole life banking — tracking cash values, policy loans, deployments, and loan repayment activity across your whole life policies.

Related terms: Participating Policy, Mutual Company, Cash Value, Policy Loan