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 ?
The European Court of Human Rights agreed that whole-life sentences breached human rights and the shock ruling led to a national debate over whether life should mean life.
The Strasbourg-based court held that there had been a violation of Article 3 of the European Convention on Human Rights - which relates to inhuman and degrading treatment - on the basis that whole-life orders were not "reducible".
In a previous judgment in July 2013, the European Court of Human Rights (ECHR) had ruled UK domestic law was unclear on whether those serving whole-life terms can be released.
The double killer, from Ely, Cardiff, was given a whole-life sentence for the murder of New Zealander Clive Tully - whose torso, head and limbs were found in bags.
But that was increased to whole-life in 1994 by then-Home Secretary Leon Brittan, who died recently.
Gaynor said: "These whole-life terms are reserved only for the most brutal murderers such as child killers and those who kill police officers but Steffan was still my child, even at 22, we shouldn't categorise by age, murder is still murder and should be treated as such.
According to the report, the judges ruled the imposition of whole-life terms was not incompatible with Article 3 of the European Convention of Human Rights, which prohibits torture and inhuman or degrading treatment and punishment.
But their claims were strongly opposed by Justice Secretary Kenneth Clarke, who has said the Government has been "fighting the case vigorously and defending the principle of the whole-life tariff".
Before considering why companies remain reluctant to use whole-life costing to inform their investment decisions, it's worth recapping what the concept actually means.
Hartford's recent whole-life product, for example, funds 412i business retirement plans and better serves owners of small businesses, a major segment of the population the company serves.
Parliament had given no express authority for creating a whole-life tariff category of punishment, and neither was there an implied authority, said Mr Fitzgerald.
The higher the premiums for the life insurance that you purchase, the more money they make, which is why they prefer to sell whole-life insurance--the most expensive insurance you can buy.