Whole Life Insurance
/hohl lyf/
Permanent coverage with guaranteed cash value.
Definition
Whole life insurance provides lifetime coverage with a guaranteed death benefit and builds cash value over time. Premiums are fixed and typically higher than term life. The cash value grows tax-deferred and can be borrowed against or withdrawn.
Example
Lisa chose whole life insurance because she wanted permanent coverage and the ability to build cash value over time.
More Life Insurance Terms
Coverage for a specific period with no cash value.
Flexible permanent coverage with adjustable premiums.
The amount paid to beneficiaries when the insured dies.
The person who receives the insurance payout.
The savings component of permanent life insurance.
The stated amount of coverage on a life insurance policy.
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