What is whole life insurance?
One of the very first things you need to consider when you are choosing the type of life insurance that will be right for you is to check whether you want to be covered for as long as you need it or for as long as you want it.
Do you only want to take out life insurance and be covered for a specific period or until a certain point in your life such as when you retire?
Do you want to be covered for the duration of your lifetime, regardless of how long that might be into the future or what age you might live to?
Short term life insurance is different to whole life insurance
What most people go for when taking out a life insurance policy is to have cover while they are still paying off their mortgage bond, for as long as it takes until their debts have been paid off, until their retirement investments and pension funds begins to pay out, while they still have dependants or until they longer have to work to address their financial needs.
Life insurance for short-term, medium or long-term is different to whole insurance which is open-ended. There is a place and time for both types.
Term insurance costs less than whole life insurance
Term insurance costs less than whole life insurance because in many instances the people insured for a specific period live beyond the stipulated term and the likelihood for an insurance pay out is reduced. With whole life insurance you are guaranteed a pay out regardless of what stage of life you are at.
Whether you are raising a family, just starting out, enjoying your first years of retirement or very old and frail, life insurance provides you with protection when you still have dependants.
It will also ensure a lump sum payment that enables you to leave a legacy for your partner or to bolster the inheritance bequeathed to your children.
Category: Life Insurance
Tags: life insurance, life insurance policy, term insurance, whole life insurance,
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