Guaranteed Whole Life
Insurance is one of the three forms of Whole Life Insurance available.
It is the most expensive option for life insurance, but it offers the
largest return in terms of investments. Many financial advisors pick
this plan for their clients since it is comprehensive in nature and
covers life insurance and offers investment options at the same time.
Optional Additions to Guaranteed Whole Life Insurance Policies
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Critical illness insurance may be added to Guaranteed Whole Life
Insurance for greater coverage. A lump sum will be paid out to the
beneficiaries when the illness is diagnosed. Policy holders should check
with insurance providers if combining policies in this way to check if
one or two pay outs will follow the death of the policy holder, if a
critical illness payment has already been made.
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Terminal illness insurance pays out a lump sum at the start of the
time the policy holder is incapacitated, allowing him or her enough time
to satisfactorily arrange their financial affairs.
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A Waiver of Premium policy covers the monthly payments should you be
unable to work because of illness. A period of time known as” deferment,
“may be enforced, before such payments are made and these vary from
company to company in length.
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Opting for guaranteed premiums means that the monthly payments will
never increase during the time a policy runs.
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'Reviewable premiums are those which are subject to reassessment every
few years, usually in five years intervals. Monthly payments typically
are higher after reviews.
Including Guaranteed Whole Life Insurance in any trusts set up for
dependants can relieve the burden of taxes and death duties
considerably.
Premiums are calculated in the same manner as
ordinary Insurance monthly payments. The insurance provider takes into
account all the factors which may include some of the following, and may
request proof of health, such as a medical examination which is usually
paid for by the insurance company.
Factors that are considered in
calculating Premiums
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Age and sex of the policy holder. Public death statistics are used to
calculate the likelihood of a policy holder dying within the term
covered by the insurance.
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Health and any history of illnesses. Illness of a chronic nature such
as heart disease will increase the chance of the policy holder dying
during the time they are insured and consequently will necessitate
higher premiums.
-
Time the policy will cover. A shorter period of time will incur a
lower premium while a longer one will increase it.
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Non smokers are less likely to die at an early age and receiver lower
monthly payments.
-
Health and any history of illnesses. Illness of a chronic nature such
as heart disease will increase the chance of the policy holder dying
during the time of insurance and consequently will necessitate
higher premiums.
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