Whole Life Insurance Policy

AAA

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 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

RELATED TERMS
  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 ...
Related Articles
  1. Top 10 Life Insurance Myths
    Insurance

    Top 10 Life Insurance Myths

  2. Protect Your Kids And Pets With Custom ...
    Insurance

    Protect Your Kids And Pets With Custom ...

  3. Cashing In Your Life Insurance Policy
    Options & Futures

    Cashing In Your Life Insurance Policy

  4. Variable Vs. Variable Universal Life ...
    Retirement

    Variable Vs. Variable Universal Life ...

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center