Note that while Ethos whole life policies do build value, because they are available to people ages 66-85, they won't have as much time to accrue cash value as policies purchased earlier in life. For younger people, deciding between the value of a whole life policy and a term life policy (like those that Ethos offers) is an important part of your life insurance research and decisions.
A whole life insurance policy provides a death benefit and coverage from when you begin the policy until the time you pass away. However, the premiums you pay into the policy can also grow additional cash value, allowing you life insurance to act like an investment.
Whole life insurance policies may offer a guaranteed growth rate with a schedule that increases cash accumulation the longer you own the policy. As the policy owner, you can either leave the accumulated cash value in the policy for a more significant death benefit upon your death or pull money out of the policy once it's earned enough value. You may also be able to borrow against the policy.
One of the differences between whole vs. term life insurance is that (provided you're up to date on premiums in a whole life policy) the term never runs out, as it does in a term life policy.
Plus, the longer your own the policy, the more cash value accrues, which could increase the guaranteed minimum death benefit. Your investment in life insurance premiums is typically higher in whole life than term life.
If the premiums fit your budget, whole life still has a set premium, a guaranteed death benefit, and the potential for accrued cash value.
The pros of whole life insurance as an investment
Reasons you may not want to diversify investments with whole life insurance:
Borrowing against both the death benefit and the cash accrued in a whole life policy offers ways to help you pay for items at any point along your life journey, whether a new home or a child's education. Keep in mind, if you borrow against the death benefit and don't repay it before you pass away, the death benefit will decrease by the amount you've borrowed, plus interest.
Get a quote for life insurance online from Ethos Life today: Check your price on our convenient calculator to see what life insurance options fit you best. No medical exam is necessary; you simply need to answer a few questions.