Whole-life-insurance meaning

Whole life insurance is defined as a type of insurance policy that serves as an investment and that provides protection for your dependents in the event of your death.

An example of whole life insurance is an insurance policy you buy that will allow you to accumulate cash for retirement and will pay a death benefit to your wife when you die.

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Insurance that provides death protection for the insured's entire lifetime.
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Life insurance that provides coverage over the entire lifetime of the policyholder: its fixed premiums establish a cash value that may be borrowed against.
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A life insurance policy that combines a death benefit payment to the policyholders’ beneficiary along with a savings vehicle that accumulates the policy’s cash value. The cash value is determined by the return that the insurance company earns on its investments. The cash accumulates on a tax-deferred basis. Other types of whole life insurance that give the insured more options for selecting the underlying investment options are universal life policies, which typically invest in fixed-income securities and variable life insurance, which includes the options of investment in stock, bond, and money market accounts. Also called permanent life insurance.
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