Financial wellness for everyone: whole life insurance
If you could provide permanent financial protection for your family in case of an unforeseen crisis, would you? For most people, the answer is a quick “yes.” Yet sometimes people are slow to act on this seemingly good idea. Take life insurance, for instance. In theory, everyone wants to have financial confidence for their loved ones, but 72% of Americans overestimate the true cost— it’s time to dispel the myth that whole life insurance is out of reach.1
Term versus whole life insurance
Life insurance commonly comes in two varieties: term and permanent (or whole life). Term life insurance covers you for a set period of time — say, 10 years — while permanent insurance has no expiration, as long as you pay your premiums.
Accessible life insurance
Traditionally, people mistakenly believed permanent life insurance was solely for business professionals well into their careers, as it was a more expensive option. Now, people across professions and life stages are becoming aware of the benefits of protection that never expires (as long as you pay your premiums) — and that can even help you grow your savings.
With these people in mind, many insurers are now offering entry-level-type whole life insurance policies, ranging in coverage amounts and at a cost-effective monthly premium. Plus, premium amounts stay the same throughout the policy, even as you age or if your health changes.
Life insurance can build cash value
People are correct in thinking of life insurance as a way to give your loved ones financial protection. But there’s an important additional benefit to whole life insurance: the cash value.2,3,4 This money can help pay for major purchases, like buying a house or taking a vacation, or for unexpected events, like an elderly parent in need of home health care services.
Some policies even offer a terminal illness rider.5 With this addition, you can access your life insurance coverage if you’re diagnosed with a terminal illness. That means you’d be able to use the money to pay for health care and other expenses, lessening the potential financial burden for your family.
Life insurance applications may now be easier, too
Life insurance is evolving by embracing the ease of digital processes, like online applications. In the past, providers may have required tedious paperwork before confirming a new policy. But today, most people do everything on their phones, tablets, or computers, and thankfully, this can include applying for life insurance.
Getting life insurance is now digitally streamlined, with application times varying based on health, eliminating many of the traditional steps.
Whole life can supplement retirement
44% of Americans are worried about having their retirement savings last as long as they need it to.6 One of the most valuable advantages of whole life insurance is that it builds cash value that can be used to help supplement your retirement. Whole life insurance can also supplement other retirement vehicles, such as 401(k)s and IRAs, to create a diversified strategy. I can work with you to help you decide on the best policy for you based on the latest options.
No one likes to think about worst-case scenarios, especially when you’re young and healthy. But unexpected things happen, and it’s best to be prepared.
Disclaimer:
1 Life Insurance Fact Sheet, Life Insurance Marketing and Research Association, September 2024 https://www.limra.com/siteassets/newsroom/fact-tank/fact-sheets/2024-life-insurance-fact-sheet-final.pdf
2 Some whole life polices do not have cash values in the first two years of the policy and don’t pay a dividend until the policy’s third year. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
3 Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59 ½, any taxable withdrawal may also be subject to a 10% federal tax penalty.
4 All whole life insurance policy guarantees are subject to the timely payment of all required premiums and the claims paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.
5 Riders may incur an additional cost or premium. Riders may not be available in all states.
6 Prepared and Protected, Guardian’s 14th Annual Workplace Benefits Study, 2025
This material is intended for general use. By providing this content The Guardian Life Insurance Company of America and your financial representative are not undertaking to provide advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity. Guardian® is a registered trademark of The Guardian Life Insurance Company of America, New York, NY. Copyright© 2026 The Guardian Life Insurance Company of America. All rights reserved.
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.
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