The whole life insurance has an annual premium of $8,230 per year (you can pay monthly but it costs slightly more). The 20-year term life insurance costs $672 per year. After 20 years the expected cash value of the whole life policy (the amount you could withdraw) is $236,679.
Is permanent life insurance the same as whole life?
There are two main types of permanent life insurance: Whole life insurance caters to long-term goals by offering consumers consistent premiums and guaranteed cash value accumulation. Universal life insurance gives consumers flexibility in the premium payments, death benefits and the savings element of their policy.
Do whole life insurance policies earn interest?
When you make premium payments on a cash-value life insurance policy, one portion of the payment is allotted to the policy's death benefit (based on your age, health and other underwriting factors). As you continue to pay premiums on the policy and earn more interest, the cash value grows over the years.