Whole Life Insurance
Unlike term life insurance, whole of life insurance will pay out a cash sum to your loved ones when you die, regardless of how old you are when that happens.
How does whole of life insurance work?
Whole of life insurance essentially covers you for your entire life, which means that your family will receive a lump sum no matter when you die. Due to it definitely paying out at some point in the future, whole of life insurance is usually more expensive than term life insurance. As such, you need to ensure that you can afford the monthly premiums for the rest of your life (or until an age specified by the policy), including during retirement, otherwise the policy will become null and void.
The different types of whole of life insurance
Whole of life insurance policies come in two main types:
Balanced cover (also called standard cover)
Your premiums remain the same throughout the policy and the cash sum paid upon your death is fixed.
Maximum cover
Your policy is linked to an investment fund, with the insurer investing the money you pay each month. Your premiums and pay-out are reviewed on a regular basis and can change according to how the insurer’s investments are performing.
Is whole of life insurance the right choice?
As with all types of financial products, the suitability of whole of life insurance will depend on multiple factors, such as whether you can comfortably afford the premiums and who receives the pay-out. For example, as the years progress, your children may become entirely financially independent, in which case a term life insurance policy may be more appropriate.
Ask us about whole of life insurance
Looking for an experienced and dedicated financial adviser who can talk you through your protection options? Get in touch with SN Financial Services today and ask us about whole of life insurance.
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Whole Life Insurance in Worcestershire and Kent
Droitwich Office
5 Saltway, Droitwich, Worcestershire, WR9 8LB 01905 779697
Sevenoaks Office
46 Holly Bush Lane, Sevenoaks, Kent, TN13 3TL 01732 926255
