Ordinary life insurance, also known as whole life insurance, is a type of life insurance policy where policyholders pay premiums at a fixed price and interval for their entire lives. The policy is considered paid up once the policyholder reaches the age of 100.
|Term Life Insurance||Ordinary Life Insurance (Whole Life Insurance)|
|Covers a specific period of time||Covers the policyholder’s entire life|
|Lower premiums||Higher premiums|
|No cash value||May include savings and/or investment components|
Ordinary life insurance policies offer an alternative to term life insurance policies. While term life insurance policies provide coverage for a specific period of time, ordinary life insurance policies provide coverage for the policyholder’s entire life. In addition, ordinary life insurance policies may include savings and/or investment components that can generate cash value.
It is important to note that ordinary life insurance policies have higher premiums compared to term life insurance. However, the savings and investment components can make it a good option for those who want to build cash value over time.
In conclusion, ordinary life insurance is a type of life insurance policy that provides coverage for a policyholder’s entire life and may include savings and/or investment components. It offers an alternative to term life insurance policies, but with higher premiums.
- Wolters Kluwer. What Is Ordinary Life Insurance? - Insuranceopedia
- Sproutt. What Are The Different Types Of Permanent Life Insurance ...
- Investopedia. Whole Life Insurance
- Progressive. Ordinary Life
- Investopedia. Ordinary Life Insurance Definition In American English