Whole Life Insurance Policy

Filed Under »
Dictionary Says

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. 

Investopedia Says

Investopedia explains '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.

Video Definition

Related Definitions

  •

    Accumulation Option

    A policy feature of permanent life insurance that allows policyholders to leave any dividends received with the insurer, where the dividends can earn interest. Accumulation options are ...
    Read More »

  • Death Benefit

    The amount on a life insurance policy or pension that is payable to the beneficiary when the annuitant passes away. Also known as "survivor benefit".
    Read More »

  • Life Insurance

    A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of ...
    Read More »

    • Single-Premium Life Insurance

      An insurance plan in which a lump sum of cash is paid up front to guarantee payment to beneficiaries. Because single-premium policies are instantly fully funded, the money invested ...
      Read More »

    • Cash Surrender Value

      The sum of money an insurance company will pay to the policyholder or annuity holder in the event his or her policy is voluntarily terminated before its maturity or the insured event ...
      Read More »

    • Group Carve-Out Plan

      A type of group term life insurance designed to appeal to well-paid executives by improving their employer-sponsored life insurance coverage. Under a group carve-out plan, the employee ...
      Read More »

    • Variable Life Insurance Policy

      A form of permanent life insurance, Variable life insurance provides permanent protection to the beneficiary upon the death of the policy holder. This type of insurance is generally the ...
      Read More »

    • Blanket Insurance

      A single policy on an insured property that covers more than one type of property at the same location, the same kind of property at more than one location, or two or more kinds or ...
      Read More »

    • Equity-Indexed Universal Life Insurance

      A permanent life insurance policy that allows policyholders to tie accumulation values to a stock market index. Indexed universal life insurance policies typically contain a minimum ...
      Read More »

    • Adjustable Life Insurance

      A type of life insurance that combines features of term and whole life coverage, giving holders the option to change the characteristics of their policies as their needs change over ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions