Whole Life Insurance
Whole life provides lifelong coverage with level premiums and a guaranteed cash value that grows by contract.
It is designed to protect family and business interests while building value you can access.
Many policies may also pay dividends, which you can use to enhance benefits or offset premiums. Guarantees rely on the insurer’s claims-paying ability.
Understanding How Whole Life Insurance Works
Each premium funds the death benefit and a guaranteed cash value schedule. Cash value grows tax deferred and can be accessed through withdrawals or policy loans. Dividends, when declared, can be taken in cash, used to reduce premiums, left to accumulate, or applied to purchase paid-up additions. Loans and withdrawals reduce policy values and benefits.
Benefits
- Lifetime death benefit with level premiums
- Guaranteed cash value that builds each year
- Potential dividends from participating policies
- Access to value through loans and withdrawals
- Useful for estate, legacy, and business continuity needs
Considerations
- Premiums are higher than comparable term coverage
- Flexibility is more limited than universal life designs
- Dividends are not guaranteed and can vary over time
- Loans accrue interest and can cause lapse if unmanaged
- Overfunding can create a MEC, changing tax treatment
Designing The Right Life Insurance Policy
Decide on participating or non-participating designs, premium structure such as base plus paid-up additions, and optional riders like term blends, waiver of premium, or chronic illness benefits.
We size funding to your goals and model long-term values, loan strategies, and projected dividends so you know how the policy may perform.
Schedule Your Whole Life Consultation
At Matador, we compare carriers, funding designs, and riders, then design a policy that supports protection, legacy, and business needs while staying manageable over time. You leave with clear steps and a plan you can keep on track.