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:
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. Related Terms:
Blanket Insurance
Cash Surrender Value
Contract Holder
Death Benefit
Life Insurance
Participating Policy
Policy Loan
Variable Life Insurance Policy
Waterfall Concept |