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:

Factors Description
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.

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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)

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