Whole Life Insurance
Build a financial foundation to help you support the people who depend on you.
Life insurance issued by Hoover Insurance NW
What is whole life insurance?
Whole life insurance is a type of permanent life insurance designed to last your lifetime¹ and your beneficiaries receive a payment based on your coverage, as long as premiums are paid on time. It is considered the most conservative type of life insurance because it provides a guaranteed level premium, death benefit² and cash value accumulation. Hoover Insurance NW® whole life insurance could be a reliable source of financial support for you and your loved ones for future expenses, from college tuition to retirement income.
Key features of a whole life insurance policy
Your premium never goes up.
Your death benefit goes to the person or people you name as beneficiaries. It's generally income-tax free³.
Your policy builds a cash value that grows at a guaranteed rate as long as premiums are paid on time.
If you need money during your lifetime, you can use the available cash value⁴.
If you cancel, you get back the available cash value.
Through a policy loan, you can borrow against the policy's cash value.⁴
What are some of the differences between term and whole life insurance?
Term life insurance provides coverage for a specific amount of time and does not accumulate cash value, unlike whole life insurance, which provides lifetime coverage and can accumulate cash value.
Term life insurance
- Provides coverage at a fixed cost for a specific time frame (the level premium period) — generally 10, 15, 20 or 30 years. The cost increases with age.
- Premiums remain fixed for the initial level premium period. The shorter the level period, the less expensive coverage can be. Premiums increase after the level premium period.
- Provides a death benefit but does not accumulate cash value.
- Can often be converted into a permanent policy.
Whole life insurance
- Provides lifetime coverage as long as required premiums are paid.
- Guarantees level premiums for the life of the policy.
- Accumulates cash value over time as long as premiums are paid, and assets can be used during your lifetime.
- Cannot be converted into another type of life insurance policy.
What are some differences between whole life and universal life insurance?
Both are permanent life insurance, meaning they are designed to last your whole lifetime, as long as premiums are paid. But whole life and universal life insurance policies differ in key ways.
Whole life insurance
- Permanent — provides lifetime coverage.
- Premiums are guaranteed level and won't increase for the life of the policy.
- Death benefit is guaranteed for the life of your policy. You choose a coverage amount when you buy a policy. You can surrender part of the policy if you no longer need all of it, as long as the remaining policy meets minimum requirements.
- Cash value builds at a guaranteed rate with each month's premium. Can be used during your lifetime. If you outlive your policy at age 121, you receive the cash value, minus any outstanding loans.
Universal life insurance
- Permanent — provides lifetime coverage.
- Premiums are flexible⁵. You can choose each month to pay the minimum or pay more. Payment above the cost of insurance builds as cash value.
- Death benefit is flexible. You can increase it, with underwriting approval, or reduce it, within policy limits. You can also choose whether the death benefit is a fixed amount or increases by the amount of your cash value.
- Cash value builds with payments above the cost of insurance and earns interest. Can be used to cover increasing cost of insurance with age. Can be used during your lifetime. You can choose whether the death benefit paid to your loved ones is level or includes the cash value.
Frequently asked questions
Learn From Experience
What Factors Drive Life Insurance Calculations?
What Should I Know Before Buying Life Insurance?
What Are Living Benefits on a Life Insurance Policy?
What Is Permanent Life Insurance?
Why Hoover Insurance NW®
For generations, customers have turned to Hoover Insurance NW to help as they protect the financial future of their loved ones. From term to permanent life insurance options, customers use our products to help them plan for the future of their loved ones, businesses or both.
- Apply securely online or with the assistance of an agent
- Same-day underwriting decisions, with no medical exams⁶
- Express claims service
- Bundle your insurance coverage, under one brand you know
- Discounts available for current customers⁷
¹ Lifetime coverage (or life of the policy) is guaranteed provided premiums are paid per the terms of the contract.
² The death benefit is guaranteed according to the terms of the contract and provided that premiums are paid.
³ In general, partial or full surrenders from a permanent life insurance policy in excess of the policy's basis are taxable. Limited circumstances exist where death proceeds will be taxable. This material has been prepared for general informational purposes only, and is not intended to provide and should not be relied on for tax, legal or financial advice.
⁴ Cash values may be accessible through policy loans. Policy loans that are not repaid and partial surrenders will reduce cash surrender value and death benefit. Policy loans are subject to interest charges. If your policy is a modified endowment contract, loans and surrenders may incur taxes and penalties.
⁵ The cost to keep your policy in force will increase over time. This policy may lapse if you do not pay enough premiums to continue coverage.
⁶ Issuance of a policy may depend on answers to questions set forth in the application.
⁷ Discounts available on selected life insurance products and may not be available in all states. Contact your agent to see if you qualify for the discount.
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