cash-value life insurance business definition

A type of life insurance in which part of the premium is used to provide death benefits and the remainder is available to earn interest. Thus, cash-value life insurance is both a protection plan and a savings plan. This insurance entails a significantly higher premium than protection-only insurance and, depending on the issuer and the policy, may pay a relatively small return on savings compared with other investments. Also called permanent insurance, whole life insurance. Compare term insurance.