Whole Life Insurance

A level premium, a guaranteed death benefit for life, and accumulating cash value — Whole life is a form of permanent insurance that combines three guaranteed elements: a level premium that does not increase with age, a death benefit payable whenever the insured dies (not just during a term), and a cash value that accumulates over time on a tax-deferred basis. The level premium structure charges more than the current cost of insurance in the early years, building a reserve (cash value) that funds the higher cost of insurance in later years. This predictable design distinguishes whole life from term coverage and from variable products whose benefits depend on investment performance.

National insurance concept

Paid-up additions — The paid-up additions option uses each dividend to buy small amounts of fully paid-up whole life insurance, thereby increasing both the death benefit and the cash value without requiring evidence of insurability. It is one of the standard dividend options, along with cash, accumulation at interest, reduced premium, and one-year term. The purchased additions are paid up and cannot lapse, so they add permanent value to the policy. This option is popular with clients who want their coverage to grow over time using the policy's dividends. The additions also earn future dividends themselves.

National insurance concept