The day you die, people may or may not remember you. But, your family would need financial and emotional support. Do you ever think of what happens when you die?
Whole of life insurance is one such type of life insurance policy that gives a lump sum amount to your loved ones. This lump sum amount gets handed over to the family members after the event of your death.
How Does Whole of Life Insurance work?
There is no rocket science behind the concept of whole of life insurance.
For starters, you will choose the payout.
Once this is done, you will start paying the premium each month.
As a responsible being, you must carry on paying your premiums, so that, your family gets the lump sum amount the day you die. While all this sounds morbid and negative, death is foreseeable. Rest assured, the payout is guaranteed in whole of life insurance UK and you will be paying the amount till the day you die.
There are two things to note here:
1. Choose a payout that you can afford each month. This needs careful planning.
2. Starting early is always advisable. Age is NOT just a number! The older you are, the more expensive the monthly premiums will be.
Types of Whole Life Insurance
There are three types of whole life insurance:
- Non-profit – You will be paying a set premium each month. This goes on till the end of your life. The insurer will then payout the lump sum amount.
- With-profit – The insurer invests the money on your behalf. The payout will depend on how their investment performs in the market. The end payout could be less or quite large.
- Unit-linked – Your premiums are invested in the stock market. This could be risky, but different strokes for different folks.
Always be clear about your current medical condition. If you are not truthful about your families and your medical history, you may not get the payout.
In money matters, be truthful and always check the inclusions and exclusions in the papers.
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!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00