Whole of Life Insurance
Whole of Life Insurance is the most comprehensive form of life insurance, covering the whole of the policy holderís life. This type may be compared with Term Life Insurance, which pays only a lump sum if the insured dies during its term.
Types of Whole life Insurance
Two kinds of whole life insurance exist; each offers its own benefits. To decide between the two, do your research!
Maximum Cover Whole life Insurance features monthly payments that are guaranteed to stay the same for a fixed period of time, typically the first ten years. After that period, premiums may be reassessed and increase.
Balanced Cover Whole life Insurance schemes support monthly payments by investment to maintain coverage throughout the life of the policy holder. If the investments do not perform well or charges increase, the payments may become insufficient t maintain coverage and require increasing.
Optional Additions to Whole Life Policies
Some additions and options may extend the coverage of Whole Life Policies.
A Few Points To Consider About Whole Life Policies
How Premiums are calculated for Whole Life Insurance
Combining Whole Life Insurance with Term Insurance will provide two separate lump sums. (Check with each policy) One will pay off the featured loan, such as a mortgage, and the other leave a lump sum to cover the expenses of dependants.
Examining the past performance of any insurance company investment fund gives you an idea if their managers have successfully used the policy holderís monies, and gives prospective customers information regarding any increases they may expect to pay for premiums of balanced cover policies.
Calculating the investment growth rate of the insurance investment fund to predict how much it will cost to keep coverage at the same level.
Ask if policies may be set up as trust funds, as these expedite the payment of funds to survive family embers and offer significant tax advantages by avoiding inheritance taxes, in some cases.
Premiums are calculated in the same manner as for any life insurance. The age and health of the policy holder are two main factors to be considered.
Non smokers typically receive far lower quote on Whole Life Insurance since they are statistically less likely to die at an earlier age.
Womenís premiums differ from menís because they tend to live longer.
Premiums depend on the length of the policy and amount insured.
Medical examinations may be required with a written report submitted to insurance brokers.
The costs of any medical tests are met by the insurers.
A report from your regular GP may also be requested, as proof of general good health.
Any incorrect information given on applications for Decreasing Term Life Insurance may result in the policy being cancelled by the insurers, so it is vital to answer all questions fully and honestly.
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