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 ?
I wonder if the 1950s TV insurance agent, Jim Anderson (played by actor Robert Young) of "Father Knows Best" fame, ever talked to the Cleavers about converting Ward's term insurance policy to a whole life insurance policy.
When it is added to a basic, whole life insurance policy, it can offer an easy way to increase the living benefits of the policy because it often increases the amount of guaranteed cash value as well as ultimately increases the guaranteed death benefits.
While not your typical bow-wrapped present, naming an adult child or grandchild a beneficiary on a single payment whole life insurance policy allows seniors to make a 'pledge' to help loved ones with real-life expenses down the road," says Richard Hotham, Vice President of Financial Institutions for Liberty Life Assurance Company of Boston.
In its simplest form, the IBC is a strategy for creating a dividend-paying whole life insurance policy from some of the oldest financial institutions in the country.
However, because the conversion feature in William's term life insurance policy allows him to convert his term insurance to a whole life insurance policy with a cash accumulation feature after he's successfully filed a claim under the policy's waiver of premium rider, he can continue to accumulate money without additional outlay by his family.
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Now you can revolutionize how you use your money; borrow money, without a lending institution; and have all the security of a high cash value, whole life insurance policy.
In the Golden Handcuffs concept, the employer is the owner, beneficiary, and the premium payer of a whole life insurance policy on a key employee's life, in which they have an insurable interest.
By combining a new whole life insurance policy and mutual funds, Solo db Life offers business owners an alternative to 401(k)s, SEP IRAs, profit-sharing and other traditional defined-benefit plans.
Whole Life Advantage is a whole life insurance policy issued by Allstate Life Insurance Company, Northbrook, IL, a wholly-owned subsidiary of Allstate Insurance Company.
Furthermore, as an agent who sells life insurance, you have a unique opportunity to build your business by selling not only a true sense of security, but also to further communicate the tax features and benefits that accompany a permanent whole life insurance policy.
a) Based on a survey by Blease Research on a $250,000 whole life insurance policy issued 30 years ago to a male insured, preferred, age 40.