What Is Whole Life Insurance?
Whole life insurance is exactly what it sounds like — protection for your whole life. This means you’re guaranteed permanent life insurance coverage* and your beneficiaries will receive a death benefit regardless of when you pass away.
What Types of DreamSecure Whole Life Insurance Do We Offer?
At American Family Life Insurance Company, we understand that every person and family is unique — that’s why we offer five Whole Life Insurance options you can choose from to meet your specific needs. In addition to DreamSecure Children’s Whole Life Insurance and DreamSecure Senior Whole Life Insurance, we offer:
DreamSecure Pay to 65 Whole Life Insurance
Add to your financial security without the burden of paying premiums after you reach age 65. DreamSecure Pay to 65 Whole Life Insurance provides guaranteed lifetime insurance coverage that can be completely paid for by the time you reach age 65.
DreamSecure 15 Pay Whole Life Insurance
DreamSecure 15 Pay Whole Life Insurance provides life insurance that is fully paid for within 15 years with protection that lasts a lifetime.
DreamSecure Whole Life Insurance
Provide a foundation for your loved ones’ financial future — DreamSecure Whole Life Insurance is permanent and designed with affordability in mind, so you can provide a legacy. The DreamSecure Whole Life Insurance policy has guaranteed premiums that are stretched out until age 100.
How Does Whole Life Insurance Work?
Here’s an example of how a Whole Life Insurance policy works: If you choose a DreamSecure 15 Pay Whole Life Insurance policy, you will not have to pay any more premiums after this time period and premiums will never increase. The policy will be completely paid in 15 years.
Benefits of Having Family Life Insurance
Whole Life Insurance helps financially protect your family if you were to pass away. Here’s a high-level look at some of the ways our DreamSecure Whole Life Insurance options can benefit you and your loved ones:
Long-term protection. Having a whole life insurance policy means you will have lifelong coverage. This means when you pass away, your beneficiaries will receive a death benefit that they can use for things like your final expenses, income replacement, paying off debts or continuing their current standard of living. Find out more about how life insurance protects your family.
Accumulates cash value. Permanent coverage builds cash value that you can borrow against. For instance, you might choose to borrow against your cash value to help with things like a down payment on a house or paying for college tuition. Keep in mind, any loans and unpaid interest outstanding at time of death will be deducted from the death benefit at the time of claim, and the policy could terminate if the loan balance grows too large for the cash value to support it.
No surprises. Your premiums won’t increase regardless of age or health changes. That means no surprises and no increased financial burden with life changes.
May pay dividends. Dividends are not guaranteed. But when paid, you can use dividends to purchase additional coverage, reduce premiums, they can be paid to you in cash, or you can elect to have them accumulate with interest.
Term vs. Whole Life Insurance
Though both coverages help financially protect your family, you may want to consider the benefits of having coverage that lasts a lifetime, compared to temporary coverage that exists only for a specific amount of time.
Term life insurance is temporary coverage that lasts for the term of your policy, usually in 10-, 15-, 20- or 30-year terms, which is great to have if you still have financial obligations and people who depend on you financially. But, your beneficiaries will only receive the death benefit if you pass away within the term of coverage purchased. Whole Life Insurance, in contrast, is permanent coverage that lasts for your entire life, guaranteeing a death benefit*, and has living benefits like cash value that you can borrow against**.
Converting Term to Whole Life
Some policies have the option to convert term life insurance coverage to whole life coverage. A convertible insurance policy, like American Family Life Insurance Company’s DreamSecure Term Life Insurance coverage, allows you to convert* a portion or all of your existing term life insurance policy during the conversion eligibility period. The perk? You can do this without having to take a medical exam or go through other screening that could affect your eligibility. This conversion option delivers the benefit of having a less expensive term life insurance policy to begin with (compared to a whole life policy, for example), while still being able to convert to a long-term policy later if your insurance needs and financial means change.
Whole vs. DreamSecure Flexible Life Insurance
Both DreamSecure Whole Life Insurance and DreamSecure Flexible Life Insurance offer long-term protection. However, DreamSecure Flexible Life Insurance also gives you the flexibility to change your policy as your life changes. With the ability to modify payments, coverages and the policy term, you can customize your coverage as your income and family responsibilities grow and change through the years.
Customize Your Whole Life Policy
American Family Life Insurance Company offers a number of additional coverages that you can purchase to build a life insurance policy that suits your needs. Here are some of the additional coverages available*:
Guaranteed Purchase Option:*** Allows the purchase of extra permanent life insurance without medical questions or an exam at specified dates and life events.
Children’s Insurance Rider: Provides $15,000 of coverage on natural, adopted and step children.
Waiver of Premium Benefit Rider: Waives premiums if the insured becomes totally disabled.
In addition to the coverages available for purchase mentioned above, each policy automatically comes with an Accelerated Death Benefit option (to be added at time of need). This benefit allows the policy owner to collect a part of the death benefit under certain conditions if the primary insured is diagnosed with a terminal illness.†***
Request a Whole Life Insurance Quote
Are you ready to take the next step in planning your family’s financial future? Contact an American Family Insurance agent to learn more about customized life insurance coverage that helps protect what matters most.
*Subject to policy and rider terms and conditions, including items like plan minimums and timely payment of premiums.
**Disclaimer: Any loans taken from your life insurance policy will accrue interest. Any outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim. If the loan balance grows too large for the cash value to support it, the policy could terminate.
*** The information described on this page is subject to policy terms and conditions. The Guaranteed Purchase Option may be exercised only at specified dates and life events and is subject to benefit amount limitations. See policy for additional details.
†***Exercising the Accelerated Death Benefit option may have tax consequences and could impact qualification for government benefits.
Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD), ICC18-36 (10), ICC18-36 (15), ICC18-36 (20), ICC18-36 (30), L-36 (10)(ND), L-36 (15)(ND), L-36 (20)(ND), L-36 (30)(ND), L-36 (10)(SD), L-36 (15)(SD), L-36 (20)(SD), L-36 (30)(SD), ICC17-225 WL, L-225 (ND) WL, L-225 WL, ICC17-226 WL, L-226 (ND) WL, L-226 WL, ICC17-227 WL, L-227 (ND) WL, L-227 WL, ICC19-97 UL, L-97 UL (ND), L-97 UL)
Rider Forms: ICC17- GPO WL, L-GPO WL, ICC17-CIR WL, L-CIR WL, ICC17-WP WL, L-WP WL, L-WP (SD) WL, ICC17-ACDB WL, L-ACDB WL