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WHOLE LIFE INSURANCE

Permanent protection for life

Whole life insurance

Regardless of your stage of life or health, Transamerica's whole life insurance products are here to help you. Whole life insurance can help protect the financial future of your family, as well as accumulate cash value you can access in case of an emergency.


In using the term “permanent,” it is important to note that insurance could lapse prior to the maturity for non-payment of premiums.

What is whole life insurance?

Whole life insurance provides permanent protection for life as long as premiums are paid. In addition to a guaranteed cash value you can access through a loan, your loved ones are guaranteed to receive a death benefit.  

You should expect to pay a higher premium than you would for a term life policy, but your premiums remain the same throughout your lifetime. 

Transamerica does not provide online quotes for whole life insurance. You will need to contact an agent to get some pricing options.

Policies offered by Transamerica

Transamerica offers several types of whole life policies so you can decide which one best suits your needs. These policies include:

Individual whole life insurance

Individual whole life insurance policies, available in face amounts ranging from $25,000 to $2 million, can help with costs associated with your final expenses, such as funeral and burial costs. In addition, whole life insurance has a cash value component you can access.

Group whole life insurance

Transamerica’s group whole life insurance policies provide you access to a whole life insurance policy through your employer as a voluntary benefit. You simply answer a few health-related questions to gain access to up to $25,000 in guaranteed whole life insurance coverage.

"69% of households would have trouble paying living expenses in two years or less if they were to lose their primary wage earner."

-"Insurance Barometer Study," Life Happens and LIMRA, 2017

Have questions about whole life insurance?

Knowing which type of life insurance is right for you can sometimes be confusing. Transamerica wants to make the process as easy to understand as possible. Below, please find some frequently asked questions (FAQs) about whole life insurance that can help you through your buying journey.
Death benefits paid from a whole life insurance policy are generally free from federal income tax. Although inheritances are generally subject to estate taxes, ownership of whole life insurance may be set up in a way to avoid estate tax. It can also be a great way to leave money to your beneficiaries that may be free from federal income tax.
 
Please note, Transamerica agents and representatives do not give tax or legal advice. This material and the concepts presented here are for informational purposes only and should not be construed as tax or legal advice. Any tax and/or legal advice you may require or rely on regarding this material should be based on your particular circumstances and should be obtained from an independent professional advisor.

One of the features of whole life insurance is the tax-deferred cash value that builds up over time. The longer you have the policy and pay premiums, the more your cash value builds up. Your cash value may be accessed at any time as a loan.* This loan will need to be repaid in full to keep the full death benefit amount on your policy.

*Although the loan does not necessarily need to be repaid, the policy may go into grace and subsequently lapse due to excessive loan amounts.

If you want to borrow against your policy, contact your insurance company. Once your request is processed, you’ll receive a check in the mail. It’s as simple as that.
 
Unlike other types of loan approvals, the process does not require taking out a loan application or waiting for a loan committee for approval. However, make sure you understand that these funds come at a cost — interest. Pay the loan back over time to ensure that the death benefit is paid out in full.
If you find yourself in financial hardship and need immediate funds, your cash value can help get you out of a jam. Some reasons people draw on their cash value include:
  • Health emergencies.
  • Urgent childcare needs.
  • College expenses.
  • Retirement savings.
  • Reducing outstanding debts.
If you can no longer afford to pay your premiums, you may be able to use your cash value to purchase an alternative whole or term life insurance policy that will meet your financial needs and provide financial protection for your loved ones.
If you borrow from your insurance policy, you will be charged interest on the loan. You also need to pay the money back in order to make the full value of your death benefit available should the worst happen.
 
There also may be times when your cash value might not be available to borrow. In this case, you will need to consider other sources of funds during times of emergency.
You will need to purchase a permanent life insurance policy, such as universal or whole, to start accumulating your cash value. By choosing Transamerica as your insurer, you have the benefit of a 100-year-old company that is recognized as an industry leader. Contact one of our agents today to get a quote and find out how you can begin growing your policy’s cash reserve.
The amount of whole life insurance you need depends on your current situation and how much your loved ones will need should the unexpected occur. Use our online tool to see what coverage amount may be right for you.