
With a 20 pay whole life policy, you have a range of customization options to fit your needs.
You can choose from different dividend options, including cash, paid-up additions, or a combination of both.
Some policies also offer a guaranteed cash value, which grows over time and can be borrowed against.
You can even customize your policy to include a long-term care rider, which helps cover costs associated with long-term care.
Policy Types
WoodmenLife offers several types of Whole Life insurance, so you can choose the one that best fits your needs.
One type of Whole Life insurance is the 20 pay whole life policy, which is designed to be paid off in 20 years.
The premium amount for a 20 pay whole life policy is paid on a monthly basis and will never increase, regardless of your age or health.
You can choose to pay your premiums annually or monthly, but paying monthly can be more manageable for your budget.

With a 20 pay whole life policy, your beneficiary will receive the death benefit tax-free as long as required premium payments are made on time.
You can also use the cash value built up in your policy to take out a loan if needed, and the interest on the loan is tax-deferred.
Payment Options
With a 20 pay whole life policy, you can choose to pay for your permanent insurance more quickly, in just 20 years, with a limited number of premium payments.
This option is ideal for insuring children, as the cash value can be used for things like paying for college or covering other expenses.
You can also use your dividends to pay your premium, if you have a participating policy. Just call the Home Office at 1-800-344-6273 for details.
Dividends are not guaranteed, but if available, they're payable on the policy anniversary, and payment is not prorated.
Policy Features
A 20-pay whole life policy offers a range of policy features that can benefit you and your loved ones. Dividends may be earned after the first policy year, increasing the policy cash value and death benefit.

You have options on how to apply dividends, including paid-up additional insurance, leaving them on the policy earning interest, paying them in cash, or applying them to your premium. Dividends are not guaranteed and are based on the company's experience with investment earnings, mortality, expenses, and taxes.
You can also borrow against the policy's cash value if you need to. Just call the Home Office for details.
Insurance Details
Insurance Details can be a bit complex, but don't worry, I'm here to break it down for you. Here are some key facts to keep in mind.
Guaranteed premiums are a big deal - they're level for 20 years with the 20 Year Term Premium Rider, so you can budget accordingly. This means you'll know exactly how much you'll be paying each month for two decades.
With Whole Life insurance, your premiums will never increase, regardless of your age or health. This is a huge relief for many people who worry about their premiums going up as they get older.

If you opt for the 20 Year Term Premium Rider, you can convert your policy to a fixed premium permanent life insurance policy without proving insurability in the first 10 years. This gives you flexibility and peace of mind.
The death benefit from Whole Life insurance is tax-free as long as you make your premium payments on time. This means your loved ones will receive the full amount without any deductions.
Here's a summary of the benefits of Whole Life insurance:
- Death benefit is tax-free
- Premiums will never increase
- Cash value builds up on a tax-deferred basis
- Loan option available if cash value is sufficient
Participating Term Rider
A Participating Term Rider can be a great addition to your life insurance policy. This rider provides a level death benefit for 20 years.
One of the benefits of a Participating Term Rider is that premiums are guaranteed and level for 20 years. This can help you budget and plan with confidence.
You can also convert this rider to a fixed premium permanent life insurance policy without needing to prove insurability in the first 15 years. This can be a huge relief if you're concerned about medical exams or proving your health.
A Participating Term Rider also allows you to participate in dividends. This means you can potentially earn extra money on top of your policy's death benefit.
Single Premium Paid Up Additional Rider
The Single Premium Paid Up Additional Rider is a feature that offers permanent paid-up insurance with a level death benefit to age 100 or until the base plan terminates. This rider is paid at issue of the base policy with a single premium.
This feature is designed to provide a guaranteed death benefit, which can give you and your loved ones peace of mind. The Single Premium Paid Up Additional Rider also participates in dividends, which can increase the policy's cash value and death benefit.
Here are the key details of the Single Premium Paid Up Additional Rider:
By adding this rider to your policy, you can ensure that your loved ones are protected with a guaranteed death benefit, regardless of your age or health status.
Dividends Enhance Permanent Policy
Dividends may be earned after the first policy year, but they're not guaranteed by the company.
These dividends can increase the policy's cash value and death benefit, giving you more value from your investment.

You have options on how to apply dividends, including using them to increase the death benefit and cash value, leaving them on the policy to earn interest, or taking them in cash.
Here are the options in more detail:
- Paid-up Additional Insurance: This increases the death benefit and cash value.
- Leave on the policy earning interest.
- Paid in cash directly to the owner.
- Apply to the annual or semi-annual premium, reducing the amount you pay out of pocket.
Keep in mind that dividends are based on the company's experience with investment earnings, mortality, expenses, and taxes.
Understanding Cash Value vs. Death Benefit in My Policy
The cash value in your policy is the amount that builds up over time, and it's also the amount you're entitled to receive if you surrender your policy. This amount will depend on any unpaid premiums or outstanding loans against the policy.
The cash value can be a valuable resource, as it can be used to pay for unexpected expenses or even provide a source of income in retirement. You can also borrow against the cash value if you need to, which can be a useful feature of some Whole Life policies.
The death benefit, on the other hand, is the amount paid to your beneficiaries upon your death. This amount can provide financial security for your loved ones and help pay for funeral costs and debts.
Here's a comparison of the cash value and death benefit:
Remember, the cash value and death benefit are two distinct features of your policy, and understanding how they work can help you make the most of your coverage.
Customization
Customization is a key feature of the 20 pay whole life policy. You can add riders to tailor the policy to your specific needs.
The policy offers a range of optional riders that give you more control over your coverage. For example, you can purchase a term life insurance rider for an additional 10 or 20 years to provide temporary protection during times of financial stress.
Ten or twenty-year term life insurance riders can be purchased for your spouse and children as well. This is a great option if you want to ensure their financial security in case something happens to you.

The Accidental Death Benefit Rider pays an additional benefit if death occurs from an accident prior to age 70. This can provide peace of mind for your loved ones.
You can also purchase the Guaranteed Insurability Option Rider, which allows you to buy additional life insurance at specific ages or during certain life events, such as marriage or the birth of a child.
Here are some of the available riders:
Keep in mind that riders are subject to limits with regard to issue and benefit age, duration, and amount. Be sure to review the policy details carefully to understand the terms and conditions.
Policy Benefits
A 20 pay whole life policy offers several benefits that can enhance your financial security and peace of mind.
Dividends may be earned after the first policy year, which can increase the policy cash value and death benefit.
You have options on how to apply dividends, including Paid-up Additional Insurance, leaving them on the policy earning interest, paid in cash directly to you, or applying them to your annual or semi-annual premium.
The cash value builds up in the policy over time and is the amount you're entitled to receive if you surrender your policy.
However, if you have unpaid premiums or outstanding loans against the policy, those amounts will first be deducted from the cash value before you're paid the remaining amount.
The death benefit is the amount paid to your beneficiaries upon your death, and it can be used to offer protection and security in various scenarios.
You can also enjoy a living benefit by accessing the cash value that accumulates over time in your policy, if you wish.
Retirement and Endowment
A 20 pay whole life policy offers a range of benefits that can help you plan for the future. You can choose to add a 20 Year Endowment to your policy, which provides a lump sum payment or installment payments after 20 years.
This payment is based on the face amount of the policy, minus any outstanding debt. You can earn loan and cash values on your policy, which can be a valuable resource over time. The premiums for the 20 Year Endowment are payable for 20 years from the effective date of the policy.
Another option is the Endowment at Age 65, which pays out the face amount of the policy on the anniversary date nearest your 65th birthday. This benefit is available on most programs, but check your policy to confirm.
Year Endowment

A 20 Year Endowment is a type of policy that provides a guaranteed payout after 20 years. This payout is the face amount of the policy, minus any outstanding loan or debt.
One of the benefits of a 20 Year Endowment is that premiums are only payable for 20 years, making it a more manageable financial commitment. The policy earns loan and cash values during this time, which can be used to supplement your retirement income.
Policy proceeds can be paid out in a lump sum or on an installment basis, giving you flexibility in how you receive your payout.
Pension at 65
Pension at 65 is a great option for those who want to secure their financial future. It's available on all programs except "K", and can be purchased before the insured attains insurance age 61.
You can opt for a Modified Life plan, which offers a permanent plan of insurance at a lower premium than the Ordinary Life Plan. The premium remains the same, but the face amount of the insurance is reduced by a certain percentage on the day before the policyholder's 65th birthday.

This reduced amount of insurance can be replaced with an Ordinary Life policy without a medical examination, if you make application no later than the day before your 65th birthday. This flexibility is a big plus, as it allows you to adapt to changing circumstances.
The pension plan earns loan and cash values, which can be a valuable asset in your retirement years.
p.article.sections.frequentlyAskedQuestions
What is a 20 year pay whole life policy?
A 20 year pay whole life policy is a type of life insurance that requires premiums for 20 years, after which the policy is fully paid up and can be used to support long-term financial goals. This policy may also accumulate cash value over time, potentially increasing its value through dividends.
What happens at the end of a 20 year whole life policy?
At the end of a 20 year whole life policy, coverage ends and no benefit is paid. This marks the end of the policy term, with no further protection or payout for the policyholder or beneficiaries
Can you cash out a 20 year life insurance policy?
No, you cannot cash out a 20 year term life insurance policy, as it typically doesn't build cash value. If you're looking for a policy with a cash value component, consider exploring whole life or other permanent insurance options.
Why would a 20 pay whole life policy endow?
A 20-pay whole life policy endows when the policyholder reaches a specified age, usually 100 or 121, when the cash value equals the death benefit. This is typically triggered by the policy's maturity clause, allowing the policyholder to access the policy's cash value.
What is the difference between a straight life policy and a 20 pay whole life?
The main difference between a straight life policy and a 20 pay whole life policy is the premium payment period, with straight life requiring lifetime payments and 20 pay whole life requiring 20 years of payments. This difference affects the overall cost and duration of the policy.
p.article.sections.sources
- https://msfbins.com/products/life/whole-life-insurance/
- https://www.womanslife.org/life-insurance/whole-life/intuitions-20-pay-whole-life/
- https://www.woodmenlife.org/insurance/life-insurance/whole-life/
- https://www.1891financiallife.com/10-and-20-pay-whole-life/
- https://www.benefits.va.gov/insurance/plans.asp
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