What is Whole Life Insurance? #lifeinsurance #wholelifeinsurance #learnaboutmoney #howto

Whole life insurance. What is it? Well, whole life insurance is a contract that you enter into with an insurance company which allows you to gain benefits over the long term in exchange for paying a premium. So what does that mean exactly? So think about it as a contract between you and the insurance company that allows you to pay money in and get a guaranteed return, guaranteed level premium over the course of your life and a guaranteed death benefit when you eventually die, whether it's in a year from now or 100 years from now. Now why would you want this? Well, there's not a lot of things that are guaranteed in life. And insurance companies exist to move risk off of daily activities and even over the course of your life onto their balance sheet. And the bet that they're making is that you won't end up paying your premiums for the long term, so end up getting to keep all that money. And in fact, that bet is paying off. Over 88% of whole life policies never end up paying out because they lapse in coverage. And over 99% of term policies end up never paying out because people don't die in the window in which they're insured or they.