Whole life insurance

(redirected from Whole Life)
Also found in: Dictionary, Thesaurus, Acronyms.

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 ?
Devotees of the media personality Dave Ramsey may also hold term life policies as one pillar of the author and talk show host's personal finance plan, which includes advising consumers to buy term life policies because they're cheaper than whole life policies, then use the difference to invest in the stock market.
With so many people trying to live a healthier lifestyle by reducing their sugar intake, this dark chocolate brownie mix by Whole Life Kitchens is a welcome addition to the market.
Thus, the policyholder will receive a lower amount of fully paid whole life insurance.
The leading players operating in the Global Whole Life Insurance Market are also studied in the report to provide readers with a comprehensive overview of the competitive landscape in the market.
He was found guilty at his trial at Phnom Penh Municipal Court on March 23, 2017, and given a whole life prison sentence.
And the blessing I shall ask shall remain unchanging, to be brave and strong and true, and to fill the world with love my whole life through.
Alex Cook, senior vice president, New York Life, said, 'Our Value Whole Life product is one of the most competitive products on the market and provides access to all the benefits of whole life insurance, including the guarantees it provides, at a more affordable cost.
"As we have seen over the past several years, whole life sales were instrumental in overall life insurance premium growth in 2016," said Ashley Durham, associate research director, LIMRA Insurance Research.
Most likely your grandparents' policy was a whole life contract priced to reflect conservative mortality and company investment return assumptions.