Also known as Whole Life Insurance or Cash Value Life Insurance. This is a contract with an insurance company whereby you pay a fee, called a premium, and in exchange, the insurer pays a death benefit to the contract owner’s beneficiary when the insured dies, regardless of when or why death occurs. In addition to providing a death benefit, this type of life insurance also accumulates a cash value, which is distributed to the policy owner if the contract is cancelled before the insured’s death. The cash value received is taxable at ordinary income tax rates to the extent that it exceeds the amount of premiums paid. See Term Life Insurance, Universal Life Insurance, Variable Life Insurance