Whole life insurance

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Related to Whole Life Policy: Endowment 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 ?
Here are seven reasons to consider a properly designed whole life policy as an alternative to a traditional plan:
Unlike the often short length of a term life policy, a whole life policy, unless surrendered, covers the policyholder through a fixed age--often to 100 years old.
5 million in coverage, he might recommend a $1 million whole life policy and the rest in 15-year and 30-year level premium term policies, which can be terminated when there is no longer a need for the coverage.
A higher percentage of term policies (without a renewal rider) may be associated with a lower lapse rate, given that the expiration of non-renewal term policies is not regarded as lapsation; in contrast, the cancellation of a whole life policy is reported as a lapse.
41) A member can also convert SGLI to a commercial whole life policy within the 120 days of separation or release.
Now we're told it's a whole life policy which pays out only on death.
A whole life policy has three features: the same two as term life (the death benefit and the cost of coverage), plus the cash value build-up.
In addition, Giselle has a term insurance policy of $100,000 and a whole life policy with death benefit of $50,000.
Finally the use of supporting appendixes including application forms, a whole life policy form, reinstatement forms, a life insurance buyers guide and a glossary of legal terms is very helpful.
The company's portfolio includes juvenile life insurance, the "Grow-Up Plan," a whole life policy for children, the "College Plan," an endowment life insurance policy, and various insurance policies for adults.
He claimed that LTL's client improperly allowed his substantial term life insurance policy to lapse and wrongfully denied his application to convert the term policy to a whole life policy with cash value.
A whole life policy at the attained age with ongoing premiums;