Life insurance also known as "life assurance" and "term insurance" could be difficult to understand. Nobody likes to think about death, but the truth is that our loved ones, our family and friends will need all the support they can get once we have passed on.
To help understand life insurance better, LifeAssurancePlans.co.uk has produced this guide for those who are looking for a quote.
- Why do you need to take out a life insurance
- Different types of insurance
- Endowment, family and critical illness cover
- Whole life insurance
- Risk and life insurance
- Saving money on life insurance
Whole life insurance
A whole life insurance policy guarantees a lump sum payout in the event of the policyholder’s death. This guarantee isirrespective of when death occurs as long as the monthly premiums are paid. The premiums and assured sums are usually guaranteed not to increase for the first ten years of the policy term. A whole life insurance policy cover is more expensive since payment assurance is guaranteed.
These guarantees come in various different forms:
- Non-profitable whole life insurance policy – this is a level premium where payments are made throughout life. It pays a fixed cash sum at the time of death.
- Whole life policy with profit – this is the same as the non-profitable insurance, but the assured payment is made up of the lump sum payment plus whatever profit has been allocated.
- Low cost whole life policy - these have a guaranteed level of cover that the amount payable on death is greater than the basic sum plus bonuses or the guaranteed death sum assured.
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