What is another name for ordinary life insurance?
Whole life insurance, or whole of life assurance (in the Commonwealth of Nations), sometimes called "straight life" or "ordinary life", is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date.
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 life insurance also called?
Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person (often the policyholder).
Is ordinary life insurance permanent?
Several types of permanent life insurance are available: Whole life, sometimes called ordinary or traditional life insurance, is a simple form of permanent coverage with level premiums. Provided the policy is kept current, the death benefit will pay a fixed amount when the insured person dies.