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Category: Insurance Author: Tim Leonard Updated: 06/11/2017
Whole life insurance is designed to provide cover for an individual's life and pay out a lump sum when they die. Whole life insurance differs from term assurance, because term assurance is only taken out over a certain number of years. With whole life insurance, your beneficiaries are guaranteed a cash sum when you die regardless of the age you live to.
You will need to pay premiums throughout your life, or until you reach a certain age, when premium payments could stop but your cover continues.
Whole life insurance policies are generally more expensive than life assurance because the insurer will definitely need to pay out in the event of your death.
Waiver of premium: if illness prevents you from working, you can pay extra for a waiver of premium, wherby your monthly premiums are paid on your behalf after a set deferment period. Check your quote's Key Facts document for each quotation produced.
Trusts: can the policy be set up in a trust? This can avoid delays in money going to dependents and the risk of having to pay inheritance tax.
Moneyfacts.co.uk has partnered with Active Quote to help you find the best life insurance deal. Complete the simple, no obligation form and they will compare leading insurers to find you the right policy. Please note that they cannot quote for whole of life insurance, just term insurance.
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Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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