Why You Should Consider Whole of Life Insurance For Financial Protection

Our modern world is very fast paced leaving little time spare time to assess our situations. We tend to be so wrapped up in our day to day living we neglect the bigger picture. We spend most of our time working hard trying to create a safe and secure future for ourselves and our family. So why do we find the financial products that will help ensure that security often end up getting pushed to the back of the task list and we continue without cover.

There are a number of different life insurance products available but we tend to always consider term assurance, a fixed level of cover for a time period of x. There are a range of other products available, take family income benefit, a life policy which pays out a monthly benefit rather than a lump sum. Very useful for those who like to know they have a monthly income rather than having the worry of investing a cash lump sum.

This article looks in a bit more detail at another form of life insurance, Whole of Life Insurance. Where a term policy only covers you for a fixed time period say 25 years a whole of life policy is not defined by a time period. As long as you continue to pay your monthly premiums the whole of life policy is guaranteed to cover you in the event of death. As the payout is guaranteed subject to a number of all too familiar exclusions you can expect to pay premiums which are much higher than those found on a term policy with a similar level of cover. In some cases a whole life plan can also include an investment element. With higher premiums does come the added peace of mind that this policy will pay out should the worst happen.

As whole of life insurance is guaranteed it can also be used for estate planning and covering any inheritance tax liabilities. Like any other life policy there are a number of personal factors which will affect your premiums. One that has been up in the air recently given the equality bill is age, however as the bill has made an exception for insurers this is still a factor when quoting. Along with age, due to the health risk associated with smoking this will also affect premiums; smokers tend to be any persons who have used tobacco products in the past 12 months.

Whole of life is a reasonably straight forward product when there is no investment element; simply continue to make your monthly premiums and the cover provided will continue until the inevitable. When looking to buy whole of life insurance always consider a number of providers, with the internet being such a valuable resource it is important to utilise the benefits. When comparing cover make sure you are comparing like for like insurance, different providers have different policy terms and can also underwrite the policy differently so it is important to read the fine print.

If you are looking to buy whole of life insurance but are still unsure of what you need to be looking for it is always best to speak to an expert, someone who deals in the products day in, day out. You may well be surprised but using an insurance expert may well end up meaning cheaper premiums. They know the good products and the insurers and with the economies of scale that they buy on you are likely to get better rates.