What are the benefits of a whole life insurance policy?

When you have people counting on you—a partner, kids, aging parents, even a business co-owner—helping protect their financial future becomes a priority. That’s where whole life insurance can come in.

Compared to term life insurance that offers coverage for the initial period of time designated in the policy, whole life products are designed to last a lifetime. As long as your whole life policy is active when you pass away, your beneficiary will receive the death benefit, subject to policy terms and conditions. It also includes a cash value feature that grows over time and could be borrowed against to help fund things like college tuition, a home purchase, or a business investment.*

Whole life insurance from American Family Life Insurance Company offers long-term protection with predictable premiums and can be a helpful part of your overall financial plan.

Let’s take a closer look at the specific benefits of whole life insurance.

7 reasons to get whole life insurance

Whole life insurance, a type of permanent insurance, is long-term coverage with several key benefits:

1. Premiums remain fixed

Whole life insurance premiums are set at issue, meaning they do not increase. This can simplify budgeting, especially when you think ahead to retirement and other big life goals.

2. It builds cash value over time

A whole life policy includes a cash value component that can grow over time. And you may be able to borrow against the cash value through a policy loan.*

3. It may offer the potential for dividends

Although not guaranteed, some whole life policies have the potential to pay dividends.** If dividends are paid, you may be able to use them to:

• Help reduce premium payments
• Build additional coverage
• Accumulate interest
• Take as cash to spend as you wish

4. You could have the option to buy more coverage later

If your policy includes a Guaranteed Purchase Option or you buy a Guaranteed Purchase Option Benefit Rider, you may be able to buy more life insurance at specified ages and life events without medical questions or an exam.

5. Cash value growth is tax deferred

Cash value in a whole life policy is commonly described as tax-deferred growth. This means it grows without being taxed on your income each year as it accumulates value.

6. Coverage stays in place even if your health changes

Whole life policies offer peace of mind because coverage can continue even if your health declines later on.

7. It’s designed to provide lifelong coverage

There’s a reason whole life insurance is often called permanent life coverage—it can stay in force for life. Many people appreciate it as a “set it and keep it” foundation for their financial plan.

How do I know whole life insurance is right for me?

When you consider life insurance options, you’ll want to choose coverage that matches your needs. Your agent can help you understand the key differences between whole life and term life policies so you can decide which protection is the best fit for you and your family.

Whole life insurance can help you plan with confidence

When it comes to life insurance, remember, you’ve got options. Whole life insurance can be a good fit if you want coverage designed to last your lifetime, steady premiums, and cash value. It’s one way to help financially protect the people who matter and the dreams you’re building together.

Ready to explore your life insurance options? Connect with an American Family Insurance agent to learn more about whole life insurance and see what makes sense for your goals.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

The words lifetime, lifelong and permanent are subject to policy terms and conditions.

*Any loans taken from your life insurance policy will accrue interest. Any outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim or from the cash value at the time of surrender. If the loan balance grows too large for the cash value to support it, the policy could terminate.

**Dividends are not guaranteed.

Policy Forms: ICC25 L101 MS 09 25, ICC25-L153 MS 09 25, ICC17-225 WL, ICC17-227 WL, ICC17-228 WL, ICC17-223 WL, ICC17-224 WL

Life insurance underwritten by American Family Life Insurance Company, 6000 American Parkway, Madison, WI 53783.