What is whole life insurance?

What is whole life insurance? Why do you need to know this definition? The MoneySense Glossary is your resource for learning and understanding financial terms.

Premiums on whole life insurance remain the same for the entire time the policy is in place. The payments tend to be more affordable the younger you are when you purchase a policy. Having said that, the premiums are significantly higher than what you’d pay for term insurance, and the payout can be lower than that of term insurance.

Example: “I’m looking at getting whole life insurance because I’ll be covered for my entire life.”

Read more on whole life insurance:

What is whole life insurance?
Here’s everything you need to know before deciding if a whole life insurance policy is the right policy for you.
Term vs. whole life insurance: Which type of policy is best?
Before you sign on the dotted line, here’s what you need to know when choosing between whole and term life insurance.
The best life insurance in Canada: your complete guide
What is life insurance? Do you need it and, if so, what kind? How much will it cost? Find out with our guide to the best life insurance in Canada.
Which type of life insurance is best?
If getting the best type of life insurance is on your current to-do list, read on to figure out which policy may be right for you and your loved ones.
How does life insurance work?
It’s one of those tasks that end up on many a back burner—who wants to think about their death?—but the benefits of life insurance make it well worth taking the time to figure out what your family will need when you pass on, so you can secure a policy that will give you peace of mind.