What is the meaning of the term whole life insurance?

Whole life insurance means the life insurance policy that:

  • normally covers an individual until his or her death, unless it lapses due to non-payment of premium or is cancelled,
  • builds up a cash value (called cash surrender value),
  • pays a fixed death benefit, and
  • where (unlike in a term life insurance) the premium amount remains constant despite the advancing age of the insured.

The insured or policyholder may obtain a loan (called policy loan) against the accumulated cash value. For more information refer to link below.