Whole life insurance

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Related to Whole Life Policies: Term life insurance, Cheap Life Insurance

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 ?
For example, life insurers set premiums for whole life policies at the inception of the policies.
To address this question, our study employs two pricing-related variables: one for pricing (per-unit premium revenues) directly; and the other, a compositional variable to reflect the mix between term and whole life policies.
Thousands of people have followed this line of thought and canceled their whole life policies -- to the joy of the mutual fund industry and the consternation of the insurance industry.
Some newly offered whole life policies feature dual premium schedules--a low-premium schedule for insureds who periodically provide evidence of insurability and another rate for those who do not provide such evidence.
Whole life policies have a living benefit and a tax-sheltered cash account that builds up inside.
But we are seeing some of the whole life policies out there that have 4 percent to 5 percent long-term rates of return.
The deep recession of 2008-09, which significantly hurt sales of both variable life and universal life products, also has wrought a positive change in the life insurance industry: People have rediscovered the value of whole life policies.
They like the fact that when they purchase whole life policies, premiums, face amount and cash value are guaranteed.
Life/LTCI combo products are also available on whole life policies.
Once a single parent is able to afford more insurance, it is recommended that she diversify with whole life policies that can be universal (fixed rate of return) or variable (rate of return based on market fluctuations).
Britannic Assurance, based in Birmingham said it would offer 4,000 Rover employees who are customers of the company the chance to delay premium payments on their endowment and whole life policies for up to a year.
In 1983, Lancaster proposed, and the trustees approved, that the Fund buy individual $10,000 whole life policies from Guaranty Income Life Insurance Company (GILICO) and that the Fund prepay three years of premiums to qualify for a discount on the second- and third-year premiums.