3 benefits of owning a whole life insurance policy

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.

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.

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.

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.