Whole Life Insurance Policy
A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against.
Investopedia Commentary
As the most basic form of cash-value life insurance, whole life insurance is a way to accumulate wealth as regular premiums pay insurance costs and contribute to equity growth in a savings account where dividends or interest is allowed to build-up tax-deferred.
Related Links
Buying Life Insurance: Term Versus Permanent
Taking The Surprise Out Of Long-Term Care
See also: Cash Surrender Value, Contract Holder, Death Benefit, Life Insurance, Policy Loan
Also spelled: Whole Life Insurance