Whole-Life Insurance Whole-life insurance pays a death benefit no matter when the insured dies. The premiums are usually much higher than a term policy and the full premium must be paid each year. Whole-life policies carry a certain cash value. This cash-value account helps the insured to pay the "fixed" premiums in later years. The policy owner may borrow against the cash value or receive the cash value if the policy is cancelled. At death, the beneficiary receives the death benefit only.
Suitability: This type of insurance fits those who want a guaranteed death benefit without considering how many years the insured lives, and who have enough money to pay the premiums.