Whole life insurance

Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premiums than term life.
Policy premiums are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time.

Fidelity does not currently offer whole life insurance.

Needs it helps meet: In addition to providing lifetime coverage, whole life is commonly used to accumulate tax-deferred savings. Whole life can also be used as an estate planning tool to help preserve the wealth you plan to transfer to your beneficiaries.

Comparing Types of Life Insurance

	Term Life  Insurance	Universal Life Insurance	Whole Life  Insurance
Needs it helps meet	Income replacement in a lump sum	Wealth transfer, income protection and some designs focus on tax-deferred wealth accumulation	Wealth transfer preservation and tax-deferred wealth accumulation
Protection period	Designed for a specific period (usually a number of years)	Flexible; generally, for a lifetime	For a lifetime
Cost differences	Typically less expensive than permanent	Generally more expensive than term	Generally more expensive than term
Premiums	Typically fixed	Flexible	Typically fixed
Proceeds paid to beneficiaries	Yes, generally income tax-free	Yes, generally income tax-free	Yes, generally income tax-free
Investment options	No	No2	No
May help build equity	No	Yes	Yes
Available through Fidelity	Yes, Term life insurance	Yes, Universal life insurance , primarily focused on death benefit protection	Not currently offered