Life Insurance

Whole of Life Policies

Whole Life Insurance Quotes - Whole of life insurance plans are policies designed to provide cover for an individual's whole life and pay out a lump sum when you die.

These plans should not be confused with term assurance, which is taken out over a set number of years. With Term Assurance policies the insurer guarantees to pay the policyholder benefits if they die within a given time. If they survive to the end of the policy's term then no benefit will be paid.

Not surprisingly whole of life insurance plans are more expensive than term assurance policies because of the certainty that the insurance company will eventually have to pay the sum insured.

The premiums are usually paid on a regular monthly basis but they can be paid annually if preferred. Depending on the individual policy, you may have to continue paying premiums right up until you die, or you may be able to stop paying once you reach a stated age, even though the cover continues until you die. Premiums depends on your age, sex, health, whether or not you smoke and amount of cover you want.

Whole of Life insurance policies, why would I need one?

Whole of life policies are usually taken out for one of the following purposes:

• To pay for funeral expenses, so your family don-t have to meet the costs.
• To help your surviving family to maintain their standard of living.
• To pay an Inheritance Tax bill. In the event of death, assets could be liable to Inheritance Tax which must be paid before the estate can be passed on to beneficiaries.

Will I need a medical?

Not always. If you are not in good health, then the insurance company may ask you to have an examination by an independent doctor to determine how well they are. If the insurance company feel that the person taking out the whole of life policy is in poor health, then they might increase the premium, offer a lower lever of cover or decline the application altogether.

It is important that the policy you take out is appropriate for your specific circumstances and requirements. Don't be enticed by adverts offering free gifts or free initial cover if you take out a specific policy. If you are interested in a Whole of Life policy, it is best to discuss it with an independent financial adviser.