What is ‘Traditional Whole Life Policy’
A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. It can cover the contract holder until a specified age limit, a traditional whole life policy never runs out. Upon the inevitable death of the contract holder, the insurance payout is made to the contract’s beneficiaries. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.