{"ok":true,"canonical_url":"https://dealroom.so/glossary/whole-life-insurance","api_url":"https://dealroom.so/api/public/glossary/whole-life-insurance","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"whole-life-insurance","term":"Whole life insurance","group":"The loan itself","definition":"Whole life insurance provides lifelong coverage and includes a savings component that accumulates cash value over time. It's more expensive than term life insurance and generally not preferred by SBA lenders for loan collateral.","what_it_means":"While whole life insurance builds cash value, SBA lenders typically prefer term life insurance for loan collateral because it's simpler and directly covers the loan amount for the relevant period. If you have a whole life policy, the lender might accept an assignment if its cash value is sufficient and accessible.","url":"https://dealroom.so/glossary/whole-life-insurance","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"},{"slug":"term-life-insurance","term":"Term life insurance","url":"https://dealroom.so/glossary/term-life-insurance"},{"slug":"life-insurance-assignment","term":"Life insurance assignment","url":"https://dealroom.so/glossary/life-insurance-assignment"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"When is term life insurance more suitable than permanent life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/when-is-term-life-insurance-more-suitable-than-permanent-life-insurance-for-business-prote"},{"question":"How does disability insurance complement life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/how-does-disability-insurance-complement-life-insurance-for-business-protection"},{"question":"How does business overhead expense insurance differ from key-person life insurance?","url":"https://dealroom.so/sba-7a/questions/how-does-business-overhead-expense-insurance-differ-from-key-person-life-insurance"},{"question":"Is a decreasing term life insurance policy acceptable for the SBA's life insurance requirement on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/is-a-decreasing-term-life-insurance-policy-acceptable-for-the-sba-s-life-insurance-require"},{"question":"Why is long-term disability insurance considered a vital complement to business life insurance?","url":"https://dealroom.so/sba-7a/questions/why-is-long-term-disability-insurance-considered-a-vital-complement-to-business-life-insur"},{"question":"How are appropriate business life insurance coverage amounts calculated?","url":"https://dealroom.so/sba-7a/questions/how-are-appropriate-business-life-insurance-coverage-amounts-calculated"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Whole life insurance","url":"https://dealroom.so/glossary/whole-life-insurance","source_type":"DealRoom Data"}}