A Whole Life Insurance plan is designed to pay premiums in a short amount of time, but is a permanent life insurance plan designed to protect the insured until age 100. A Whole Life Insurance plan creates Cash Value (CV) throughout the life of the policy. The CV grows off of an established interest rate set forth in the contract. A paid-up Whole Life policy cannot lapse before its mature date, even if interest rates drop well below the rate of credit applied in the contract. The policy has a minimum Death Benefit (DB), that if paid-up, cannot drop below the contracted rate, but can increase due to the growth in the Cash Value Accumulation (CVA).
A Whole Life Insurance policy is NOT invested in the stock market. Therefore, it does not reflect market gains or market losses.