Whole Life Assurance

Everything to Know About Whole Life Assurance

Standard Life, Royal London, Norwich Union UK. These are just three of the biggest life assurance companies in the UK and one underlying thing that unites these three insurance giants is that all of them offer whole life assurance policies. Although this type of life assurance may not be the cheapest deal available, there are a few things that need to be considered before saying that whole life insurance is not worth a second look.

The Components

As its name implies whole life insurance covers the policy holder throughout his whole life. Whole life insurance also comes in other forms such as for life insurance or whole of life insurance but they all mean the same thing—that this type of policy will make sure that the insured is covered for the rest of his life on earth. Unlike term life insurance which only provides cover for a specified amount of time, whole life insurance policies will remain in place for as long as the premiums are paid, regardless of one’s health or age.

Multiple Beneficiaries

Just like any other insurance policy out there, whole life assurance also requires beneficiaries. These people are the ones that will benefit from the policy should the insured die or contract some sort of fatal illness. However, what some people don’t realize is that whole life insurance also has living advantages that can also benefit the policy holder. This is where the cash value of the policy comes in. Whole life insurance is unlike any other type of insurance in that it builds cash value over time. This can be used by the insured as collateral for a loan or even withdraw it should there be a need for liquid cash.

It Is Expensive, Isn’t It?

The rates of whole life assurance are sometimes double of those associated with term life insurance. Although whole life may require a considerable investment on the onset, it is actually a fact that one will end up getting more in the long run. An important aspect of whole life insurance is that its premium never changes. The premium will remain the same regardless of one’s age and health; one will be paying the same premium when he turns 50 as what he was paying back when he was 20. The inflation rate therefore, becomes a nonfactor.

If one’s intention is solely to be able to insure his life at the lowest cost possible, term life insurance is definitely the wiser choice. However, for those who may have more to spare wouldn’t it be good to have one’s life insured, build on one’s savings, and make a profitable investment all in the same pound? GP