Understanding whole of life insurance
Whole of life insurance sounds to be a rather complicated term but in fact, the position is relatively easy to explain:
- life insurance quotes typically outline cover under one of potentially several types of life insurance;
- one of these is called whole of life insurance – more commonly called simply whole life cover on many life insurance quotes
- this type of policy will typically provide a lump-sum payment to the beneficiaries in the event of the death of the insured;
- what makes this different to other forms of life insurance is that the policy will typically pay out (assuming the conditions have been met and the premiums are up to date etc) at whatever age the insured dies at – in other words, the cover runs for the whole of their life;
- this differs from other conventional forms of life insurance where the policy may be in force for a specified number of years (often referred to as its term);
- whole life cover is sometimes used by people who would like to leave a little behind when they die, to help with things such as funeral arrangements, travel and perhaps some form of wake etc;
- by contrast, term life insurance may be more frequently associated with people that have significant outstanding financial commitments such as mortgages and dependent family members etc;
- sometimes whole life cover is portrayed as being over-50s insurance, although it may be popular with more mature people, technically it is not restricted to older age groups and may be taken out by people of any age;
- inevitably, questions arise relating to medicals and pre-existing medical conditions – the practices of individual providers may vary considerably on this point but it is typically the case that existing serious conditions may be excluded from cover and some insurers may require a medical (depending upon how you may have responded to questions on the application) although this is not always the case;
- taking out whole of life insurance cover is relatively straightforward and uncomplicated, however, as with any insurance, it is important to study the policy’s conditions carefully to ensure that you understand and accept them.
Related posts:
- Does Whole Life Insurance Hold More Value Than Term Coverage?
- At Least Affordable Life Insurance Rather Than No Coverage…!
- Life Insurance Guide for Consumers
- Whole Life vs Term Life Insurance Comparison
- Whole Life Insurance, the right technique to plan your future
- What You Should Do Before Getting Term Life Insurance Quotes
- Why individuals Review Life Insurance Plans