Interest-Sensitive Whole Life

"Interest-Sensitive Whole Life" insurance is a type of permanent life insurance that combines the lifelong coverage of traditional whole life insurance with the added feature of a variable interest rate applied to the policy's cash value.

Unlike standard whole life policies that offer a fixed interest rate on the cash value component, interest-sensitive whole life policies adjust the interest rate based on prevailing market conditions. This means that the cash value's growth can fluctuate, offering potential for higher returns during periods of favorable interest rates.

For policyholders, interest-sensitive whole life insurance provides a blend of guaranteed death benefit protection and the opportunity for enhanced cash value accumulation. The guaranteed death benefit ensures financial security for beneficiaries, irrespective of the policy's cash value performance.