Whole Life Insurance

Whole life insurance is the most basic form of permanent life insurance. It provides a guaranteed death benefit, provided payment requirements are met, with tax-deferred cash value. Your regular payments (or premiums) are set at the time your policy is issued and will never increase. Interest is paid at a fixed rate and accumulates tax-deferred. It’s that simple.

Key Benefits of a Whole Life Insurance Policy

• Guaranteed death benefit¹
• Level premiums that will not increase as you grow older
• Cash value that earns a guaranteed fixed rate of interest¹ and grows tax-deferred
• Option to pay additional premiums to increase your policy’s cash value
• Access to cash value through tax-advantaged loans²

How Does a Whole Life Insurance Policy Work?

1. You pay regular premiums.
2. Premium charges are deducted from your premium.
3. The remaining premium is applied to your account value.
4. Interest is credited to your account value at a fixed rate and accumulates tax-deferred.
5. Monthly insurance costs are deducted monthly from the account value.
6. If you cancel (or “surrender”) the policy during your lifetime, you’ll receive the cash value minus any outstanding loans or indebtedness. Surrender charges may apply.
7. The death benefit – minus any outstanding policy loans and interest due – is paid to your beneficiaries at death.

Whole Life Insurance Choices from The Hartford

• Hartford ExtraOrdinary Whole Life

¹ Guarantees and benefits are based on the claims-paying ability of the issuing insurance company. Broker/dealers, insurance agencies and their affiliates who sell the policy make no representations or guarantees regarding such ability.

² Both loan and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy's account value and death benefit. Assuming a policy is not a Modified Endowment Contract (MEC), withdrawals are taxed only to the extent that they exceed the policyowner's cost basis in the policy and usually loans are free from current federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions.