Whole Life Insurance Definition

A whole life insurance policy is a type of permanent insurance that provides a guaranteed death benefit and has fixed premiums.

Whole life insurance definition. This traditional life insurance is sometimes also known as straight life insurance or cash value insurance. Whole life insurance or whole of life assurance sometimes called straight life or ordinary life is a life insurance policy which is guaranteed to remain in force for the insured s entire lifetime provided required premiums are paid or to the maturity date. Whole life is a type of life insurance contract that provides insurance coverage of the contract holder for his or her entire life. The policy includes a savings portion called the cash value.

As a life insurance policy it represents a contract between the insured and insurer that as long as the contract terms are met the insurer will pay the death benefit of the policy to the policy s beneficiaries when the insured dies. Whole life insurance guarantees payment of a death benefit to beneficiaries in exchange for level regularly due premium payments. Whole life insurance definition is a type of life insurance that costs the same as long as the insured person is alive and that pays benefits to survivors when the person has died.