Whole Life Insurance Law and Legal Definition

Whole life insurance is an insurance contract which continues during the entire life of the insured and provides for payment at the insured's death or at an advanced age. Premium payments are usually the same amount throughout the insured's lifetime. Whole life insurance builds a cash value payable to the insured as either a loan or payable outright if the policy is cancelled. The investment or savings value is called the cash surrender value of the policy.