Slide 2:

Whole life insurance

What is whole life insurance?
Whole life insurance, also known as traditional life insurance, provides
permanent death benefit coverage for the life of the insured. In addition to
paying a death benefit, whole life insurance also contains a savings component
in which cash value may accumulate.
Slide 3
The nature of whole life insurance:
 Often called ordinary life insurance it provides life time protecion and pays
the face amount if insured dies or reaches specific age (100)
 It is viewed as endowment insurance (it pays if he dies before age too or if
he reaches it)
 Also whole life insurance is viewed as a term insurance up to age 100 and
pays the amount as if he had died
 Because of level premium, he has the right of cash value
 Also, he can borrow this cash value under loan provision.
 Finally he can surrender it at 100 and gets the cash value that equals the face
amount