Whole & permanent life insurance
Plan beyond a
fixed number of years.
Permanent life insurance can serve a lasting coverage need. Compare the death benefit, premium commitment and cash value terms together before choosing a policy.
Understand the differences
Permanent does not mean every policy works alike
Whole life
A defined premium structure
Traditional whole life generally combines scheduled premiums, a stated death benefit and guaranteed cash values, subject to the contract. Dividends, when offered, are not guaranteed.
Universal life
More flexibility to manage
Premium and death benefit flexibility comes with funding requirements. Charges, interest credits and withdrawals can affect how long coverage remains in force.
Indexed universal life
Index-linked interest credits
Interest may be linked to an index using caps, participation rates or other limits. Policy charges still apply, and illustrated results are not a promise of future performance.
Using policy value
Know the tradeoffs before taking money out
Cash value and the death benefit are different measures. Early surrender values can be lower than total premiums paid. Ask what you would receive if you ended the policy in a specific year.
Loans accrue interest and can reduce the amount paid to beneficiaries. Withdrawals and surrender charges can reduce available values. Heavy borrowing or insufficient funding can jeopardize coverage.
Check the tax consequences
Loans, withdrawals, surrender and a lapse can have different tax effects. Policy funding and modified endowment contract status also matter. Have a qualified tax adviser review the intended use.
A useful policy review
Ask for the numbers behind the presentation
| Question | What to request | Why it matters |
|---|---|---|
| What is guaranteed? | What to requestThe contract guarantees and the premium/payment conditions supporting them. | Why it mattersProjected values or dividends can change. |
| Can I keep funding it? | What to requestRequired payments, duration and a lower-performance scenario. | Why it mattersA plan should remain affordable beyond the first few years. |
| What if I exit or borrow? | What to requestSurrender values, loan interest and the impact on coverage. | Why it mattersAccessing money can change the benefit and policy longevity. |
Common questions
Fit the policy to the purpose
Who might consider permanent coverage?
Someone with a lasting dependent-support, legacy or business need may consider it. Ownership and beneficiary planning deserve extra care when trusts, special-needs planning or estate goals are involved.
Does permanent coverage last automatically?
No. Coverage depends on meeting the policy’s premium, funding and other requirements. Review guarantees, charges and any maturity provisions.
Do beneficiaries receive the death benefit plus the cash value?
Do not assume so. The payout depends on the death-benefit option and policy terms; cash value is generally not a separate amount added to a traditional whole life death benefit.
Should I replace my term policy?
Compare the need, cost and any conversion rights first. You may keep term coverage, add permanent coverage or choose a different approach. Confirm new coverage before ending the old policy.
Explore your options
More life insurance guides
Washington Insurance Brokers
Let’s put the details together.
Start with a quote or a conversation
Tell us who depends on you, what you want covered and a premium you can maintain.
Quotes are estimates, not a guarantee of coverage. Eligibility, premiums, benefits and exclusions depend on the insurer and policy. Review the issued contract and any underwriting requirements. Information reviewed September 19, 2026.
Resources: NAIC: life insurance policy typesNAIC: policy illustrationsNAIC life insurance buyer’s guideIRS: life insurance proceeds