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.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

whole life insurance

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
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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.
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The proceeds from a whole life insurance policy on Ward could have protected June's financial future.
The widow in return agrees to name the cousin as beneficiary to half of her whole life insurance policy (which has a death benefit of $12 million).
Under a typical SDA, an employer and an employee join in purchasing a whole life insurance policy (or a similar type of policy - e.g., variable life or universal life, containing an investment element) on the employees life.