Which term is another name for whole life insurance?

Whole life insurance is often referred to as ordinary life insurance. This terminology comes from the structure and characteristics of this type of life insurance policy. Whole life insurance provides coverage for the insured's entire lifetime, ensuring a death benefit is paid upon the policyholder's passing, as long as the premiums are paid.

Ordinary life insurance highlights the fact that this type of policy builds cash value over time, allowing the policyholder to potentially access funds through loans or withdrawals. The premiums remain level throughout the life of the policy, which is another defining feature of ordinary or whole life insurance.

The other options do not accurately describe whole life insurance. Convertible life insurance refers to policies that can be converted from one type to another, while term life insurance provides coverage only for a specified term and does not accumulate cash value. Universal life insurance is a type of permanent insurance that offers more flexibility in premium payments and death benefit amounts, differentiating it from whole life insurance.