Whole life insurance

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Related to Whole Life Insurance Policy: Term Life Insurance Policy, Universal Life Insurance Policy

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 ?
Consumers who can see retirement on the horizon and want to ensure sufficient income throughout old age may want to consider how a whole life insurance policy, the principal of which is tax exempt, can serve as a savings tool.
It is important to note that the beneficiary is not taxed on any proceeds from the death benefit that are over and above the cash value of the whole life insurance policy.
A universal life insurance policy is similar to a whole life insurance policy because it provides a death benefit and accumulates cash value on a tax-deferred basis.
A whole life insurance policy is a permanent policy that provides for a guaranteed death benefit on the death of the insured in exchange for set, guaranteed premium payments.
In 2013, MassMutual realized its eighth consecutive year of growth in whole life insurance policy sales $347 million and demand continues to be strong through the first three quarters of 2014.
Co The value of a whole life insurance policy is uncorrelated to the stock market and is largely guaranteed by the insurer, so that neither death benefits nor cash values are affected by declining markets.
The Seventh Circuit recently affirmed the Tax Court's holding requiring that a couple recognize income from the cancellation of their whole life insurance policy even though they technically received no funds upon cancellation.
Many senior clients may be pleasantly surprised to learn that an older, whole life insurance policy has acquired a significant amount of cash value over time.
The WBP expert sells Jones a $5 million whole life insurance policy with an annual premium of $100,000.
Although the benefit is not as great, the same analysis would hold true for a whole life insurance policy with cash surrender value.
NYSE:SLF, TSX:SLF) announced the introduction of Sun Care Whole Life (WL), a single premium whole life insurance policy with a linked benefit that owners can apply to long-term care costs, including for in-home care, assisted living, and nursing home facilities.