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What is Whole Life Insurance

Whole life insurance is permanent insurance that will cover you throughout your life and builds cash value over time. Including whole life insurance in your long-term financial plan can be a dependable way to protect your family’s lifestyle while you strive to meet your financial goals. The death benefit offers security by providing money to help pay for funeral costs and take care of debts. This permanent insurance also builds cash value on a tax-deferred basis.

Get to Know Whole Life

Whole life insurance is a great option for locking in permanent life insurance at a premium rate that will remain the same until the certificate is paid in full. You can choose from a number of different time periods to pay for your certificate (10 years, 20 years, or when you reach age 65 or 100). Once the certificate is paid up, you are covered until age 121.

How WoodmenLife Whole Life Insurance Works

You will pay a set premium amount for whole life insurance. Most people pay monthly. Your premiums will never increase, regardless of age or health.

When you die, the beneficiary, or beneficiaries you’ve chosen will receive the death benefit tax-free. You choose this amount when you purchase the certificate. You also have the option to choose multiple beneficiaries, or to leave a gift to charity or another organization.

Your beneficiary can use this money to help with your final expenses, like paying off any debts you may owe or by paying for your funeral.

Whole life also builds cash value on a tax-deferred basis. If there is enough cash value available, you may be able to take out a loan from your certificate if needed.1

Types of Whole Life Insurance

WoodmenLife offers several types of whole life insurance:

Whole Life Paid-up at 100

This option offers more affordable premium rates than other whole life plans by allowing you to pay premiums until age 100.

Whole Life Paid-up at 65

This type of whole life is perfect if you want to finish paying premiums before you retire. It builds cash value during your working years, and you pay premiums until you reach age 65.

10 Pay or 20 Pay Whole Life2

These options allow you to pay for your permanent insurance more quickly, in either 10 or 20 years with a limited number of premium payments. These products are ideal for insuring children. In this case, the cash value can also be used for things like paying for college or to cover other expenses.1

Included Add-Ons

You can add these riders to your whole life certificate at no extra cost:

Accelerated Death Benefit Rider

If you are diagnosed with a terminal condition, you can receive a portion of your life insurance benefits4 while still living.

or

Chronic and Terminal Illness Accelerated Benefit Rider

If you develop one or more qualifying conditions, you may receive a portion of your life insurance benefits5 while still living.

In addition to the value offered by each of these products, WoodmenLife issues refunds3, similar to dividends, for many whole life certificates each year, which you can choose to reinvest into your whole life certificate.

Optional Add-Ons

You can choose to add additional riders to your No Lapse certificate, for a fee, to receive more customized benefits:

Accidental Death Benefit Rider

Provide extra life insurance coverage that takes effect if your death is accidental. This rider is available on whole and universal life, and on some types of term life.

Applicant Waiver of Premium Rider

If you have purchased life insurance for a child who is age 15 or younger, and you are listed as the owner on the child’s certificate, this rider helps if you ever become disabled. It will pay the monthly premium on the youth’s life insurance certificate if you become disabled within the contractual terms of this rider.

Disability Waiver of Premium Rider

Prepare for the unexpected with this add-on. If you become disabled within the contractual terms of this rider, your premiums will continue to be paid.

Guaranteed Insurability Rider

Purchase additional insurance coverage without proof of insurability in the future. You will be able to make these increases at specific ages and when certain life events occur, such as marriage, and the birth or adoption of a child.

Compare Whole and Term Life

Use the following chart to start learning about which type of life insurance might be best for you.

Whole Life Insurance
Coverage
  • Permanent
Benefits
  • Premiums never go up
  • Builds cash value
  • Death benefit proceeds paid income tax-free to beneficiary
Types
  • Whole Life Paid-up at 100
  • Whole Life Paid-up at 65
  • 10 Pay Whole Life
  • 20 Pay Whole Life
Issue Ages
  • Varies by type of insurance, from ages 0-85

Term Life Insurance
Coverage
  • Temporary (with option of converting to permanent later)
Benefits
  • Less expensive in the short-term
  • Death benefit proceeds paid income tax-free to beneficiary
Types
  • 10 Year Term
  • 15 Year Term
  • 20 Year Term
  • 30 Year Term
Issue Ages
  • Varies by type of insurance, from ages 0-80

Whole Life Insurance Term Life Insurance
Coverage
  • Permanent
  • Temporary (with option of converting to permanent later)
Benefits
  • Premiums never go up
  • Builds cash value
  • Death benefit proceeds paid income tax-free to beneficiary
  • Less expensive in the short-term
  • Death benefit proceeds paid income tax-free to beneficiary
Types
  • Whole Life Paid-up at 100
  • Whole Life Paid-up at 65
  • 10 Pay Whole Life
  • 20 Pay Whole Life
  • 10 Year Term
  • 15 Year Term
  • 20 Year Term
  • 30 Year Term
Issue Ages
  • Varies by type of insurance, from ages 0-85
  • Varies by type of insurance, from ages 0-80

What's next?

Your Representative will prepare a customized plan that best meets your specific needs and budget. Get started by connecting with a Representative near you.

Learn More

Disclosures

  1. Loans and withdrawals will reduce the policy’s death benefit and available cash value. A loan, withdrawal or surrender may be a taxable event. For tax advice, consult with your professional tax advisor. Excessive loans or withdrawals may cause the policy to lapse.
  2. There may be tax implications for policies recognized as modified endowment contracts (MEC). Distributions including loans from a MEC are taxable to the extent of the gain in a policy and may also be subject to a 10% additional tax if the owner is under age 59 ½.
  3. Refunds are not guaranteed.
  4. Forms ICC10 264 6-10, 264 6-10 (XX), O-264 6-10 (XX) and 264-XX-0409. All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs. Maximum benefit is the lesser of $250,000 or 65% of death benefit amount available and usually paid in one lump sum. Generally benefits received are income tax-free. Consult your tax professional to assess the impact of this benefit.
  5. Forms ICC17 8690 1-17; 8690 1-17 (XX). All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs. Certain eligibility requirements apply. This rider is not long term care insurance, nor is it intended to replace long term care insurance. Maximum benefit for terminal illness is the lesser of $250,000 or 65% of death benefit amount available and usually paid in one lump sum. Maximum benefit for chronic illness is the lesser of $250,000 or 50% of the death benefit amount available, subject to the annual per diem limitation declared by the Internal Revenue Service. Payments made under this rider are intended to qualify for favorable tax treatment under the Internal Revenue Code. As with all tax matters, a tax professional should be consulted to assess the impact of this benefit. Not available in CA or NY.

Whole Life Insurance [Form ICC17 8678 1-17 & Form 8678 1-17 (XX)]. EZ Whole Life Insurance [Form ICC17 8679 1-17 & Form 8679 1-17 (XX)]. These certificates have exceptions, limitations and restrictions. For costs and complete details in coverage, contact your WoodmenLife Representative.

Accelerated Death Benefit Rider: Forms ICC10 264 6-10, 264 6-10 (XX), O-264 6-10 (XX) and 264-XX-0409. All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs.

Chronic and Terminal Illness Accelerated Benefit Rider: Forms ICC17 8690 1-17; 8690 1-17 (XX). All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs. Certain eligibility requirements apply. This rider is not long term care insurance, nor is it intended to replace long term care insurance. Not available in CA or NY.

Accidental Death Benefit Rider: Form 260-XX-0409. All contractual provisions apply and may vary by state.

Waiver of Premium Rider: Form 262-XX-0409; 262-04-1401; All contractual provisions apply and may vary by state. May not be available on all products.

Applicant Waiver of Premium Rider: Form 263-XX-0409. All contractual provisions apply and may vary by state.

Disability Waiver of Premium Rider: Form 8649 1-16 (XX), ICC16 8649 1-16, 262-04-0114 & 8649 1-16 (XX). All contractual provisions apply and may vary by state. May not be available on all products.

Guaranteed Insurability Rider: Forms ICC17 8690 1-17; 8690 1-17 (XX). All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs. Certain eligibility requirements apply. This rider is not long term care insurance, nor is it intended to replace long term care insurance. Not available in CA or NY.

Term Life Insurance: Forms ICC16 8648 1-16, 8648 1-16 (XX). Premiums for 10, 15, 20 or 30-year term are guaranteed not to increase during the initial policy term. Once the initial policy term ends, your premiums will increase on an annual basis until age 95. Any increase in premium will not increase the certificate benefits.

Products are not available in New York and all products may not be available in all states.

WEB32 - 3/16/2020