Let's protect your (whole) life.
Do more of the things you love—with those you love. Our industry-leading coverage lasts your entire life and has many benefits you can use along the way.
What is whole life insurance?
Enjoy lifelong protection1 and other features you can use throughout your life with this type of permanent life insurance. As you make payments, your policy will accumulate cash value. It's guaranteed to grow (typically tax-deferred) regardless of market ups and downs. You can use the cash value for whatever you want or need.2 You can also earn dividends3 that can be taken as cash, used to pay premiums, or buy more coverage.
Guaranteed payout
Along with feeling confident that your loved ones will get a guaranteed death benefit1 when you're no longer here, you'll have lifelong coverage
Costs are set
How much you'll pay will depend on things like your coverage amount, age, and health. Once your premiums are set, what you pay each month (or yearly) will never go up.
Accumulates cash value
Your policy accumulates a pool of money (aka cash value) over time.2 You can use it for anything you need—unexpected expenses, college tuition, or as income when you retire.
Questions about whole life insurance? We've got answers.
What is the cash value of whole life insurance?
As you make payments, part of your premium is set aside. Over time, this pool of money (called cash value) typically grows tax-deferred. You have the option to withdraw or borrow against it for whatever you need throughout your life. You can use it for things like unexpected expenses, helping to put your kids through college, expanding your business, upgrading your home, or as additional income in retirement. See if whole life is right for you.
How does whole life insurance cash value grow?
The biggest contributor to cash value growth is the portion of your premium that's set aside each month (or yearly). With whole life, the cash value earns a guaranteed, fixed interest rate set by the insurance company. While the rate is typically considered conservative, it's unaffected by market volatility. Plus, through compound growth which is tax deferred, the cash value can grow even more over time.
Other policies like universal life and variable universal life offer more flexibility over how cash value accumulates. With universal the amount you earn on the cash value is set by the insurance company but can fluctuate over time. With a variable universal policy, your grow is tied to investment options, which are subject to market risk.
Whole life also has the potential to earn dividends (while not guaranteed, we've paid them every year since 1872) that can be added to the policy's existing cash value.
How does whole life insurance work?
We promise to pay who you name (beneficiaries) a set amount of money when you're no longer here. You, in return, promise to make regular payments (premiums). But whole life insurance from Northwestern Whole Life is much more than that. As you make payments, you'll accumulate cash value (usually tax-deferred) that you can use for anything you wish.2 You can also earn dividends (while not guaranteed, we've paid them every year since 1872) that can be taken as cash, used to pay premiums, or buy more coverage.
What does whole life insurance do?
Can you cashout whole life insurance?
Yes, there are several ways you can tap into the accumulated cash value of your whole life policy. The best option for you will depend on things like whether you want to keep your coverage or not and how much money you want to access.
Policy surrender:
This option cancels your policy outright. We'll give you the cash value amount that has accumulated so far (if any), minus any surrender charges and outstanding loans (if you've taken any loans against your policy). However, it's important to keep in mind that you will no longer have coverage.
Policy withdrawal:
A partial surrender (which surrenders paid-up additions, if any, and releases their cash surrender value) is likely the easiest and fastest way to access the cash in your policy. Keep in mind, by taking money out, you could reduce the long-term growth potential and could leave a smaller death benefit to beneficiaries.
Policy loan:
You can borrow against your whole life insurance policy up to an amount close to the total cash surrender value. However, these loans will accrue interest charges, which can be high. Unless properly managed, the balance of a policy loan can become so large that it causes the policy to lapse, thereby requiring surrender of the policy to obtain repayment of the loan and triggering immediate taxation of any gain inside the policy along with other potential tax consequences. Plus, any money that hasn't been paid back by the time you pass away will be taken from the amount paid to your beneficiaries.
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