Family Office Definition: Whole Life Insurance
Whole Life Insurance definition: A whole life insurance policy pays beneficiaries a guaranteed amount when the owner dies. The policy provides coverage for the owner’s entire life (also known as permanent coverage) and does not need to be renewed. Similar to a tax-deferred investment, the policy’s cash value increases over time, and the earnings are only taxed when distributions are made. With whole life policies, the premiums, death benefits, and cash values are fixed during the term of the policy. Beneficiaries are not taxed on their proceeds from a death benefit. However, life insurance policies may be included in the taxable estate depending on how they are structured.
Download our free Family Office Report to learn more about the family office industry.
Read more Family Office Definitions
Tags: What is whole life insurance?, whole life insurance definition, whole life insurance family office, whole life insurance term, define whole life insurance, whole life insurance wealth management, whole life insurance multi-family office, whole life insurance single family office
