The whole of Life Insurance covers you for the whole of your life, without any fixed period. This means that the beneficiaries of the policy will receive a guaranteed payout irrespective of the time of death. In this regard, it is different from term life insurance, which guarantees payout only if you die within the specified term of the policy.

Importance of whole life insurance

What makes having whole-life insurance worth it is the assurance of payout that it provides. You know that all your investment as premiums will result in a payout to your beneficiaries at some point in time, post your death. So, the whole of life insurance gives that peace of mind that your loved ones will be looked after with the money that you invested for them after you die.

Term insurance lacks a guarantee

This guaranteed assurance is not there in term life insurance, because if you outlive the policy term, there is no payout and the money given as premium remains with the insurance company.

Expensive proposition

However, this guaranteed assurance makes the whole life insurance policy an expensive proposition because the insurance company knows that they will have to make a payout, no matter when the death of the insured happens.

Since there is no policy term, it is essential that you can afford the premiums not just during your working life but also after your retirement. If you cannot keep up with payments of premium, the policy will be cancelled. Usually, an insurance company expects you to pay premiums until the age of 90. However, this will vary with insurance companies and policies, so it is advisable to check the terms of the policy closely.

Can cover Inheritance Tax Bill

The whole of life insurance can also take care of your Inheritance Tax bill. This type of insurance can also be helpful if you want to leave some money as an inheritance for your loved ones, or money to cover your funeral costs.

We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
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