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 Does American Family 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 after you reach age 65.
DreamSecure 15 Pay Whole Life Insurance
DreamSecure 15 Pay Whole Life Insurance provides life insurance that is fully paid after 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 level premiums that are stretched out until age 100 and is available for both adults and children.
How Does Whole Life Insurance Work?
DreamSecure Whole Life Insurance can help financially protect your family if you were to pass away. It’s a lifelong policy with level premiums and offers living benefits, like cash value and dividends. 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 insurance 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 or from the cash value if the policy is surrendered, and the policy could terminate if the loan balance grows too large for the cash value to support it.
Your premiums won’t increase regardless of age or health changes. That means no surprises and no increased financial burden with life changes.
Potential to 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 Life Insurance 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 Life Insurance 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.
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 From an American Family Insurance Agent
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.
This is a brief description of coverage and is subject to policy and/or rider terms and conditions which may vary by state. Fixed and guaranteed premiums are statements about the policy as determined at issue, and any￼￼ made to a policy may affect the premium and are subject to our underwriting rules. The words lifetime, lifelong and permanent are subject to policy terms and conditions. This policy matures at age 121. Please check with an American Family agent for details on coverages and restrictions.
* 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 or from the cash value at the time of surrender. If the loan balance grows too large for the cash value to support it, the policy could terminate.
** The Guaranteed Purchase Option may be exercised only at specified dates and life events and is subject to benefit amount limitations. See rider 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