What is an ordinary whole life policy

Ordinary Life — a type of whole life insurance contract arranged so that the premiums are payable as long as the insured lives. The contract is not paid up and does not mature until the named insured reaches age 100 or dies, whichever event comes first.

What is ordinary whole life insurance?

Whole or ordinary life\n\n This is the most common type of permanent insurance policy. It offers a death benefit along with a savings account. If you pick this type of life insurance policy, you are agreeing to pay a certain amount in premiums on a regular basis for a specific death benefit.

What is the difference between ordinary and whole life insurance?

Key Takeaways. Term life is pure insurance, whereas whole life adds a cash value component that you can tap during your lifetime. Term coverage only protects you for a limited number of years, while whole life provides lifelong protection—if you can keep up with the premium payments.

What is one advantage of ordinary whole life insurance?

Fixed benefit for your beneficiaries\n\n You can depend on a guaranteed amount of money going to your heirs or other designated causes from what is known as a death benefit. This life protection won't vanish if premiums are paid — it's a financial product that remains in place for your entire life.

What are the characteristics of ordinary whole life insurance?

Whole life insurance\n\n Compared to other forms of permanent coverage, a whole life policy has three defining characteristics: The level premium remains the same for life. The death benefit is guaranteed as long as the guaranteed premiums are paid. The policy includes guaranteed cash values that grow at a guaranteed rate.