What Is Simplified Whole Life Insurance?
Simplified Whole Life (SWL) insurance is a type of permanent life insurance that provides lifelong coverage with fixed premiums. In this policy, a part of your premium builds tax-deferred cash value, which you can use for retirement, paying premiums, or offsetting healthcare costs. The SWL policy does not require a medical exam, and you can buy additional coverage after major life events without a medical exam through the Life Event Option (LEO) rider.
Factors Affecting the Cost of Whole Life Coverage
The cost of whole life coverage depends on various factors, including:
|Age||The younger you are when you buy the policy, the lower your premiums.|
|Gender||Women typically pay less than men.|
|Health||If you have health issues, you may pay more for your policy.|
|Smoking||Smokers pay more for life insurance than non-smokers.|
|Occupation||If you have a risky job, you may pay more for your policy.|
Whole life premiums are higher than term life insurance, but the payments are fixed. As long as you pay the premiums, your beneficiaries will receive a payout that can cover funeral expenses and debt. Whole life insurance is permanent, and it builds cash value that you can use while you’re still living. It helps protect long-term needs like burial expenses or providing money for your kids, while term life insurance is temporary and helps protect short-term needs like paying a mortgage or putting kids through college.
If you want a permanent policy without health questions or a medical exam, you can consider guaranteed whole life. USAA offers various life insurance policies, health insurance, and retirement products. Speak to a USAA representative at 800-531-LIFE (5433) to start a conversation about your financial needs and how whole life insurance can help.
Our carriers beat Colonial Penn, Globe Life, and AARP 96% of the time*
* Based on website quote requests, through 5/31/23.
(Check your rate to see their rates vs. ours)