Buying life insurance comes with a range of benefits for you and your family. Whole life insurance is an ideal way of providing your loved ones with peace of mind for the future ahead. In this article, we’ll look at 3 key benefits of owning whole life insurance.

What is whole life insurance?

Whole life insurance (also sometimes known as ‘life assurance’) covers you for your entire life. No matter when you die your family receives a lump sum to help them financially during this difficult time.

Whole life insurance has two types of cover:

Balanced cover - The standard type of whole life cover, The eventual payout value and cost of your monthly premiums remain fixed throughout the length of your policy. 

Maximum cover - Your policy is linked to an investment fund. Each month your insurer will invest the money from your monthly payments to cover the future payout amount. If the investment performs, bonuses can be added to your cover, however, if it fails your premiums could be raised to cover the loss.

When you take out life cover, each month you pay premiums to your insurer. Your cover may be ended early if you stop making payments for cover. In this case, you won’t be able to reclaim any of the money from previous payments.

Interested in speaking to an adviser?

Why buy whole life insurance cover?

Put simply, nobody wants their family to be left out of pocket when we die. Though whole life insurance is expensive, it ensures your family is taken care of after you’ve died.

A whole life policy is best suited to those whose families depend on them financially.

Along with its many benefits, whole life insurance can be used to support your family with future expenses such as:

  • Living costs
     

  • Mortgage repayments
     

  • Household bills
     

  • Childcare support
     

  • Outstanding debts/loans
     

  • Funeral costs

If you and your spouse share the financial responsibility of your household, you may want to consider a joint life insurance policy. Many couples find joint policies cheaper and easier to manage than individual policies.

For more information on joint life insurance, please see our article: Single vs Joint Life Insurance

Let's look at some of the benefits of having whole life insurance…

1. Permanent cover

One of the main benefits of whole life insurance is that, unlike term life insurance, it provides permanent cover. Term life cover, on the other hand, lasts for a set period of time (i.e 20 years). But with whole life cover, your policy pays out no matter when you die.

2. Guaranteed payout

As a whole life policy provides permanent cover that means your family is guaranteed a lump sum payout when you die. It’s important to note that you need to keep making your monthly payments to remain covered. Other types of life insurance, like term life insurance, only pays out if you die within the policy term.

3. Fixed Premiums

With a balanced cover whole life policy, your premiums remain the same throughout your cover. Even as you get older and more likely to develop health problems, your policy premiums remain the same price as when you originally took out cover. The payout value also stays the same during cover.

Products & Services from the leading financial brands

  • Zurich
  • Legal And General
  • Aviva
  • AIG
  • Beagle Street
  • Canada Life
  • Cavendish Life Cover
  • LVE
  • Royal London
  • Vitality Life
  • Virgin Money
  • Budget Insurance

How to get cheap whole life insurance

Though whole life insurance is expensive, this isn’t always the case. Here are just a few ways to save money on whole life insurance such as:

  • Get cover when you are young - The cost of life insurance rises as you get older, therefore getting a policy early can save you money in the long run.
     

  • Don’t smoke - Life insurance premiums cost more for smokers due to the health risks associated with smoking. Some providers can reduce your premiums if you manage to stay smoke-free for 12 months or so.
     

  • Opt for term life insurance - if you're looking for a cheaper policy then you should consider term life cover. Though it has an expiry date, term life insurance is typically cheaper than a whole life insurance policy. 

To learn about the differences between these policy types take a look at this article - Whole And Term Life Insurance: Which Is Better?

Get advice on life assurance

Unsure about which life assurance policy is right for you?Get in touch with our friendly team of experts and they can offer advice on the best course of action for you and your family. Why not also check out our latest news for helpful articles and insights designed to answer many of your questions.

Speak to an adviser about Whole Life Insurance today

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Whole Life Insurance.

The advisers will make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 436 193 (Monday to Friday, 9am - 5.30pm)

Apply with advice

How does a life assurance policy work?

Prev article

Whole life insurance: everything you need to know

Next article