Whole life insurance


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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 ?
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The ABI says that although such a policy is dearer than term or whole life insurance, it will help your family's finances should you die, while at the same time offering a method of long-term saving.
Most consumers should not purchase a whole life insurance policy unless they plan to hold it for at least 15 years.
For the more established and successful business operation, whole life insurance may be the way to go.
Whole life insurance provides coverage for the entire lifetime (or the whole life) of the insured or until the insured is 100 years old as long as the policy is in force.
HORSHAM, Pa: The Penn Mutual Life Insurance Company and M Financial Group announced a new specialty carrier relationship that will make Penn Mutual the primary provider of whole life insurance for M Financial.
Woodforest Commercial Banking has announced it has led a new USD 60 million senior secured credit facility for Avmont, a private investment fund focused on investing in whole life insurance policies, the company said.