What Does Whole Life Insurance Mean?
Whole life insurance is a type of life insurance that provides coverage for the entirety of the policyholder's life and has a savings component. It pays out a death benefit upon the policyholder's death, and it accumulates cash value over time that the policyholder may withdraw for personal use or borrow against. It contrasts with term life insurance, which only provides coverage for a set period, and does not include a savings component.
Whole life insurance is also commonly known as ordinary life insurance or straight life insurance.