Whole Life Insurance Definition For Dummies

Your family will receive a one off cash lump sum in the event of your death.

Whole life insurance definition for dummies. If you have dependents relying on you for an income it helps to have life insurance in place. Keep scrolling for more. Definition of whole life insurance. Upon the inevitable death of the contract holder the insurance payout is made to the contract s beneficiaries.

Life insurance is an insurance policy that will pay out a financial sum to your family when you die. The beneficiaries of your life insurance policy receive a lump sum that covers bills everyday expenses and various anticipated costs such as medical bills or college tuition. Whole life insurance is paid out to a beneficiary or. A whole life insurance policy is permanent insurance that is designed to provide coverage for the policyholder s entire life.

Whole life is a type of life insurance contract that provides insurance coverage of the contract holder for his or her entire life. It is a life insurance product that is designed to provide life insurance protection for your entire life. Life insurance is a plan for the unexpected it offers financial protection to your loved ones if you die suddenly by replacing your income. It provides coverage for a specified amount of time known as the term.

As long as he or she pays the premiums as scheduled a whole life policy will remain in effect until maturity. 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. Whole life insurance lasts for a policyholder s lifetime as opposed to term life insurance which is for a specific amount of years. These policies also include a savings component which accumulates a cash value.

Depending on the type of product or company it can range from coverage to age 90 100 121 or lifetime. Life insurance isn t just for dummies term life insurance is temporary. Life insurance companies offer their customers term life because it is less expensive than a permanent life insurance product like whole life.