Business, Legal & Accounting Glossary
Life insurance which provides coverage for an individual’s whole life, rather than a specified term. A savings component, called cash value or loan value, builds over time and can be used for wealth accumulation. Whole life is the most basic form of cash value life insurance. The insurance company essentially makes all of the decisions regarding the policy. Regular premiums both pay insurance costs and cause equity to accrue in a savings account. A fixed death benefit is paid to the beneficiary along with the balance of the savings account. Premiums are fixed throughout the life of the policy even though the breakdown between insurance and savings swings toward the insurance over time. Management fees also eat up a portion of the premiums. The insurance company will invest money primarily in fixed-income securities, meaning that the savings-investment will be subject to interest rate and inflation risk.
I had waited my whole life for a shot at the big time and I finally had my chance and I could not let anyone down.
I have been investing over the course of my whole life so that investing has been easier for me to maintain has become a habit of my daily life.
John’s dad signed up for whole life insurance instead of term life insurance because he wanted to ensure that he was covered life insurance wise if he life to be 99.
extended term insurance
vanishing premium policy
variable life
universal life
comparative interest rate method
surrender value
combination plans
single-premium life insurance
vanishing premium
term insurance
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This glossary post was last updated: 26th November, 2021 | 0 Views.