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 ?
According to Weisbart (1976) and Colquitt and Hoyt (1997), the insurer's lapse ratio is the ratio of the volume of ordinary life that lapsed or was surrendered during the year to the average total volume of ordinary life insurance in force during the year.
A regression analysis was then completed for these top companies to see if the changed market share rates were associated with higher or lower ordinary life insurance premiums.
As compiled by the NAIC organization, the lapse rate is reported for ordinary life insurance products.
Hence, the purchase rate of ordinary life insurance (PR) is defined as the annual average number of ordinary life policies purchased per person, or per thousand people.
Individual ordinary life insurance commissions increased 10% to $6.9 billion from $6.2 billion, and individual ordinary annuities commissions rose 23% to $8.3 billion from $6.7 billion in 2003.
The retention limit is defined as the amount of ordinary life insurance retained by the ceding insurer on the life of any insured individual (under all policies, collectively).
Ordinary life insurance may be kept in force for a person's
"In fact, I was talking to this one private equity guy who said 'you should create the first minority-owned ordinary life insurance company.'"
sub.i])/[lambda] form Equation (5), C = total costs, [q.sub.INV] = dollar volume of security investments, [q.sub.OL] = dollar amount of ordinary life insurance premiums, [q.sub.GL] = dollar amount of group life insurance premiums, [q.sub.OA] = dollar amount of ordinary annuity considerations, [q.sub.GA] = dollar amount of group annuity considerations, [q.sub.A&H] = dollar amount of accident and health premiums, [P.sub.L] = price of labor, [P.sub.K] = price of capital, [D.sub.M] = dummy variable equal to 1 if a mutual company, and 0 otherwise, [D.sub.A] = dummy variable equal to 1 if an agency and 0 otherwise, and n = random error term.
Dividends from ordinary life insurance policies declined 3% in 2003 over 2002, but increased 8% in 2002 over 2001, the data says.
Face amount of life insurance ceded to reinsurers continued to increase for the 9th consecutive year and exceeded half of the total ordinary life insurance in-force for the IC&A Composite for the first time in its history, reaching 51.6% and 55.9% in 2002 and 2003, respectively.
Ordinary life insurance pays a benefit upon the insured's death.