Glossary: Whole-of-life insurance

A life assurance policy that provides death protection for the insured’s entire lifetime but with an investment element. The insurance component pays a stated guaranteed amount upon death of the insured, and the investment component accumulates a cash value that the policyholder can either leave invested to compound up or withdraw as a lump sum or income. If left invested, the investment value is paid as an additional payment to the guaranteed death benefits. The premiums are fixed for the life of the policy and don’t increase with the age of the life assured.

Relevant to: Life insurance

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