Whole Life Insurance
Definition - What does Whole Life Insurance mean?
Whole life insurance is a type of life insurance policy that requires a person to pay monthly payments until they die to continue the insurance. If a lapse in payments happens, the policy is null and void. If a person pays through their life and the policy becomes payable to the beneficiary upon the person's death it will be for a set sum of money. That sum is not based on the amount of payments made to date. A person is able to take a loan out against their policy during their lifetime against the cash value of the policy. If that happens and the loan isn't repaid by the time of the insured's death, the sum left unpaid is deducted from the face value of the policy.
Justipedia explains Whole Life Insurance
This is one of two popular life insurance choices; people choose this one for the possibility of borrowing against it and the knowledge that it will pay a set sum in the future. The beneficiary has to be named at the time of initiation, but can be changed at any point throughout the person's life.