Whole life insurance

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Whole life insurance

A contract with both insurance and investment components: (1) It pays off a stated amount upon the death of the insured, and (2) it accumulates a cash value that the policyholder can redeem or borrow against.

Whole Life Insurance

A life insurance policy with no expiration date. That is, a whole life insurance policy provides coverage for the entire life of the policyholder (provided he/she continues to make premium payments). When the policyholder dies, regardless of when that is, his/her beneficiaries receive the death benefit. Whole life insurance policies also include a cash surrender value, allowing the policyholder to recover part of the premium he/she has invested in the policy should he/she ever decide to cancel the policy.

whole life insurance

Whole life insurance.

A whole life insurance policy is a type of permanent insurance that provides a guaranteed death benefit and has fixed premiums.

This traditional life insurance is sometimes also known as straight life insurance or cash value insurance.

With a whole life policy, a portion of your premium pays for the insurance and the rest accumulates tax deferred in a cash value account. You may be able to borrow against the cash value, but any amount that you haven't repaid when you die reduces the death benefit.

If you end the policy, you get the cash surrender value back, which is the cash value minus fees and expenses. However, ending the policy means you no longer have life insurance and no death benefit will be paid at your death.

References in periodicals archive ?
Most ordinary whole life insurance policies have no explicit surrender charges.
Whole life insurance policies grant coverage until death that may not be cancelled by the insurance company.
Also, wealthy consumers who are concerned about estate taxes that may be incurred by beneficiaries after they die may consider whole life insurance policies because of the payout of those policies can be used for just such an expense.
For example, one Tampa, Florida business has used the cash value of its whole life insurance policies several times over the years, in one instance staving off mortgage foreclosure and in another, redeeming shares.
If you're setting aside money to leave as an inheritance, first check term and whole life insurance policies, particularly if you're young.
These lawsuits arise from the sale, beginning in the late 1970s, of whole life insurance policies, whose dividends accumulate to build cash value.
The Guardian Gold Series of three new whole life insurance policies was introduced to better meet the unique needs of America's changing population - from those funding kids' college educations, to thirty-somethings who want to start a solid financial foundation, to parents and grandparents who will live decades into retirement and wish to provide a legacy for their heirs.
7 billion of whole life insurance policies that are surrendered as well).
Many whole life insurance policies in the marketplace offer clients the opportunity to combine base whole life coverage with term coverage via a Blended Insurance Rider to create premiums that are closer to what is possible with universal life.
Purchase of periodic premium whole life insurance policies at the earliest possible age is still one of the best hedges against unforeseen future needs than is the case with any other financial product.
The amended complaint also alleges that the same deceptive course of conduct was used to sell whole life insurance policies to some of the named plaintiffs.
IN A RECENT DISTRICT COURT opinion, the court decided that a corporation had an insurable interest on the lives of over 2,400 of its employees on which it had purchased whole life insurance policies.