foxex: What is 'Whole Life Insurance'?

Sunday, October 20, 2019

What is 'Whole Life Insurance'?

Whole life insurance provides coverage for the life of the insured. In addition to providing a death benefit, whole life also contains a savings component where cash value may accumulate. These policies are also known as permanent or traditional life insurance.

Related to "Whole Life Insurance"

Whole Life vs. Universal Life Insurance: What's the Difference?

Whole life insurance caters to long-term goals, offering consumers consistent premiums and guaranteed cash value accumulation. Universal life insurance gives consumers flexibility in the premium payments, death benefits, and the savings element of their policy.

Term vs. Universal Life Insurance: What's the Difference?

Term life insurance is the most basic of insurance policies. Universal life insurance falls under a broader category known as permanent insurance.

How Cash Value Builds in a Life Insurance Policy

If you have permanent life insurance, more of your insurance premium goes to cash value in the early years of your policy.

Related Definitions

Rider

A rider is an insurance policy provision that adds benefits to or amends the coverage or terms of a basic insurance policy.

Net Amount at Risk

Net amount at risk is the monetary difference between the death benefit paid by a permanent life insurance policy and the accrued cash value.

Death Benefit

A death benefit is an amount on a life insurance policy or pension that is payable to the beneficiary when the annuitant passes away.

Tax Equity And Fiscal Responsibility Act Of 1982

TEFRA is federal tax legislation passed in 1982 to increase revenue in the country through a combination of federal spending cuts, tax increases, and reform measures.