Whole Life Insurance

One of the few certainties we all know we will encounter is death. It is a very sad and distressing time for the family, but sadly can be even harder to manage with the financial burden that goes with a loved one passing. A whole of life plan guarantees a payment, regardless of age, as long the premiums have been maintained, it will payout and help reduce the emotional stress.

The plan can be used for any number of reasons, but typically will be in place to meet the immediate financial commitments associated with passing, funeral cover and inheritance tax, or just to provide a sum for loved ones to help with the loss of income.

Pros and cons of Whole of Life Plans

Whole of life like any insurance has to be the right choice for you and your family’s needs. The key advantage to whole of life is that the payout is guaranteed whether you live to 70, 80, 90 years of age or hopefully beyond. As a population we are enjoying a longer life expectancy with over 65% of the population living beyond their 75th birthday, compared with only 12% 100 years ago. So while we may have no idea at what age we will die, we know it will happen and we know there will be a cost associated, and that is the need a whole of life plan will address for your family.

We offer what is known as pure protection policies also known as a Not-profit whole life policy. The advantage of this type of policy is that your level of protection and premiums are guaranteed never to change throughout the life of the policy, regardless of health or circumstances. The policy has no element of investment, and is very similar to term insurance. This basically means that monthly premium payments will contribute directly to the cover and not to an investment plan.

The only negative feature with a whole of life plan is the cost. The plan has a guaranteed payout, so needless to say it will typically have higher premiums than that of a more common term policy, which offers no such guarantee. The plan is underwritten unlike an Over 50’s Plan or Funeral Plan, so if you have serious health conditions, it may not be suitable. Conversely, if you are in good health, it will offer significantly more cover at the same premium, which over the life of the product would be significant.