Introduction

When it comes down to it what matters most to people is their family. When it comes to the crunch, its family we first think of, family we worry about and family that gives us most happiness. The desire to protect those closest to us is a fundamental need.

We can never know, what life will throw at us in terms of ill-health, disability or death, but what we can do is make sure our family is financially secure should the worst happen.

This is where life assurance and other protection policies such as Income Protection and Critical Illness Cover come in. Because life assurance has been around so long, and because everyone should have some level of financial protection, more than 100 companies provide life assurance and protection policies. This makes for a competitive market which can only benefit consumers.

However, over the years the policies have become increasingly complex with many options and features that differ from plan to plan.

Get a quotation for Whole of Life

For help completing this form call
01843 847626

Whole of Life Assurance

This guarantees the payout of a lump sum when the policyholder dies, at whatever time that may be as long as payments are maintained. The premiums and sum insured are guaranteed not to increase for the first ten years. However, they are more expensive as a claim is assured. These come in various forms:

• Non-profit whole life policies – A level premium payable throughout life. It pays a fixed cash sum at the time of death.
• With profit whole life policies – Same as non-profit policies but the amount paid on death is the sum assured plus whatever profits have been allocated.
• Low cost whole life policies – 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.

Pros

• Whole of Life insurance always pays out in the end, so you'll always get some money.
• It could be worth thinking about if you want to leave your family with a lump sum.
• You can combine it with term insurance if you want to cover any specific debts.

 Cons

• Whole of life insurance is more expensive than term insurance.

Life insurance premiums

Life insurance policyholders pay premiums into a fund from which all claims are paid out. There are two types of premium available – the guaranteed and reviewable policies:

• Guaranteed Premiums – The life insurance company guarantees to never increase your policy premium.
• Reviewable Premiums – You agree that the company can review your policy at set intervals.

Initially the reviewable premiums will work out cheaper. However, over time these premiums are likely to be increased and therefore the overall cost will surpass that of the guaranteed premium. So generally, guaranteed premiums will work out as a better buy in the long run, but if you are on a tight budget the reviewable premium may present a better short-term option.

Waiver of Premium

If illness prevents you from working your monthly premiums are paid on your behalf for after a set deferment period.

*By using this quotation system cover is not guaranteed and subject to the insurers normal underwriting conditions.