Whole Life Insurance Policy


DEFINITION of 'Whole Life Insurance Policy'

A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against.


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BREAKING DOWN 'Whole Life Insurance Policy'

As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build-up tax-deferred.

  1. Accumulation Option

    A policy feature of permanent life insurance that allows policyholders ...
  2. Single-Premium Life Insurance

    An insurance plan in which a lump sum of cash is paid up front ...
  3. Equity-Indexed Universal Life Insurance

    A permanent life insurance policy that allows policyholders to ...
  4. Group Carve-Out Plan

    A type of group term life insurance designed to appeal to well-paid ...
  5. Cash Surrender Value

    The sum of money an insurance company will pay to the policyholder ...
  6. Variable Life Insurance Policy

    A form of permanent life insurance, Variable life insurance provides ...
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