Whole of Life Insurance is often taken out for family protection purposes to provide a lump sum to your dependents in the event of your death.
Whole of Life Insurance provides life cover as the title describes-potentially for the whole of your life i.e. whenever you die the policy will pay out as long as you maintain the premiums read more. If you were to die during the term of the policy, this is different to Level Term Assurance which usually only pays out. The cost of Whole of Life Insurance is usually greater than that of Level Term Assurance.
The whole life insurance policy is then revival again in say 5 or 10 years’ time when the same assessment is made and the level of cover is agreed for a further period. Should you decide that there is no longer any need for the whole of life cover you can cancel the policy and you may receive a lump sum representing the surrender value of the policy read more.
Whole of Life Insurance policies often has other options such as the ability to the level of life cover and/or the premiums to increase automatically each year. There is often an option to include Critical Illness cover in the policy so that the policy would pay out either upon earlier diagnosis of a specific critical illness i.e. heart attack, cancer, stroke, kidney failure or upon death which ever happens.
As can be seen whole of life insurance is a flexible policy with many options so, as stated earlier, you should seek sound advice from a suitably authorized financial adviser as to whether a whole life insurance policy is suitable to meet your requirements read more.