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 ?
"While most of the industry quietly opposes total repeal, because they believe it threatens sale of whole life policies, especially to the affluent, we support it because as a mutual life insurance policy we realize most of our policyholders would benefit.
Many whole life policies have been purchased with the expectation that policy dividends (current and accumulated) would one day pay premiums.
Whole life policies also build up a cash reserve over the life of the policy.
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).
Lapsation and policy terminations may be initiated by consumers at any time by failing to pay premium billings on term and whole life policies. The non-renewal of term and whole life policies may also occur on renewal anniversaries for policies with guaranteed renewable riders.
Similar to ordinary level premium whole life policies, once a policyowner has chosen a premium payment plan, there is an element of "forced saving" until the policyowner requests a change in the premium payment plan.
Therefore, planners should compare not only term insurance rates but also the rates and quality of the whole life policies into which the term insurance may be converted.
Thus, A purchased whole life policies on its employees' lives, naming A as the beneficiary.
If policies are held for a significant number of years, the cash values of whole life policies can supplement pension benefits or help fund shareholder buyouts.
Dennis Richardson, R-Central Point, argued that the proposal included unrelated provisions that would have drastically increased the interest to be repaid on loans from whole life policies.
It says it regularly pays between 30 per cent and 50 per cent more than the surrender values offered by life offices on low-cost endowments and whole life policies.
Britannic Assurance says it will give 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.