A traditional whole life insurance policy offers you a guaranteed death benefit along with a savings component that helps you build wealth. In a nutshell, you make your policy payment every year, and the company pays you dividends over time that get credited to your cash value. This becomes a type of bank account for you to draw from as you need money. You also get lifetime coverage for this type of policy in a guaranteed contract.
This policy is good for your entire life. A whole life insurance policy will not lapse, nor will you need to renew or get a new policy. The insurance company invests your premiums, and this is where the growth of your cash value happens. While you do not direct the investments, the insurance company will pay you based on how the insurance company performs in its investments and overall finances. This is why we only recommend using about 10 Insurance companies across the US.
If there is any drawback to a traditional whole life policy, it is that it will be more “expensive” than a term insurance policy. Remember though, everything with the Insurance Carriers is cost vs risk. They are 100% obligated to pay your death benefit and build your cash value every single year. Moreover, with a whole life insurance policy, your premiums will be constant and not change over time and your cash value is guaranteed to increase every year. You will absolutely get more out of it than you put in if you keep it for your Whole Life.