It is life insurance that you will have for your entire life. A side benfit of whole life is it builds a cash value much like a savings account. It is more costly than tem in the beginning but far more cost effective later in life. Term insurance is the Cash Cow for insurance companies. Only 2% of term policies sold ever pay a death benefit. Think about it! You are going to die someday. With or without insurance? 4lifeguild
Insurance that provides death protection for the insured's entire lifetime.
Traditional Whole Life Policy
A type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. Unlike term life insurance, which covers the contract holder until a specified age limit, a traditional whole life policy never runs out. Upon the inevitable death of the contract holder, the insurance payout is made to the contract's beneficiaries. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.
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When the life insurer takes the coverage of a person for hie/her whole life, that is called whole life or term assurance policy,where there is no maturity payment. Benefits are payable to the nominee in the event of death of the policy holder in question.
A whole life insurance is also referred to as "permanent insurance". Unlike term insurance, which stays in effect for a stated period of years, whole life, based upon the accumulation of cash value, can stay in force permanently.
"Cash value" may be thought of as small savings account within the policy, although do not conduse it with a real savings account. Every premium paid goes to offset the indemnity (death) benefit, and some goes into the cash value "account" The cash value accumulates slowly at forst, but faster the longer the policy has been in force. At some point, premiums may not have to be paid as the policy becomes fully "paid up". This does not happen with term insurance.
When there is a sufficient amount, the cash value can also be withdrawn ("borrowed") from the policy. It does not have to be paid back, but interest accrues on it. Therefore, if enough time elapses, the amount of the policy loan plus accumulated interest can signifiantly reduce the amount of the death benefit.
In Whole life policy, insurance claims are entertained in case of any eventuality of the policy holder during the tenure of the policy period only, like term assurance policy.
Technically, there is no insurance policy called as permanent life insurance. However, you can treat whole life insurance policy as permanent since the policy covered the whole life span of the policy holder and benefit is payable to nominee in the event of any eventuality of the policy holder.
A whole life insurance provides coverage for an individual's whole life. A savings components which builds overtime and can be used for wealth accumulation. Whole life is the most basic form of cash value insurance.
Actually, whole life insurance policy other than endowment,single premia or ulip policy can be called ordinary life insurance policy.
The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.
Government Owned Life Insurance Corporation of India's New Jeevan Anand Policy is at present the best insurance policy in India, which is a mixture of endowment and whole life policy, which is indeed novel and unique in the whole world.
Term life insurance is only life coverage. When the person who is insured dies, the beneficiary receives the amount of the policy. Whole life insurance is a term life policy combined with an investment. This policy builds value.
In Whole life policy, insurance claims are entertained in case of any eventuality of the policy holder during the tenure of the policy period only, like term assurance policy.
A whole life insurance product is life insurance policy that lasts for the entire lifespan of the individual under the policy. New York Life and Mass Mutual are two popular companies that offer whole life insurance products. Check out their websites for more information.
Some Canadian whole life insurance policy providers are State Farm Canada, LSM Insurance, MJW Insurance, Essential Benefits, and The Canada Life Assurance Company.
A single pay whole life insurance policy is a permanent life insurance policy that requires a one time payment/premium. The policy is guaranteed to stay in force until age 121 (in USA) and no additional premiums need to be paid.
I have a whole life insurance policy, how long does it take to cancel it, also can I get money back from it.
Modified whole life is a whole life policy that charges smaller premiums for a specified period of time after which the premiums increase for the remainder of the policy. Whole life often can change unrpedicatably due to inflation.