*Based on £150,000 of level-term cover for 25 years for a 30-year-old non-smoking male with no pre-existing medical conditions (March 2023)
Whole life insurance, also known as whole life assurance, is a type of life cover.
It pays out a lump sum to your family or nominated beneficiary whenever you die, rather than if you die within a set time frame.
When you set up your whole life insurance policy, you’ll have to choose what payout you want. Then you’ll start paying a monthly premium.
Providing you don’t miss any premium payments, the policy will pay out to your family when you die.
Whole life insurance rates are usually higher than with other types of life insurance, because the policy lasts your entire life.
When you start looking for whole life insurance, you’ll need to find the policy that offers you the cover you need, at the best price.
Things to consider when considering a whole of life insurance policy:
Amount of cover: Before you start looking at whole life insurance, think about how big you want the payout to be. For whole of life insurance, UK companies will mostly let you choose any amount but the higher the payout, the more expensive the monthly payments.
Your age: You’ll also need to think about how your age could affect the price of your monthly payments. The older you are, the more expensive your whole life insurance will be.
Once you’ve thought about these points, you can do a life insurance comparison and get the best quotes for whole of life insurance.
You might decide you only need life insurance for a set amount of time. For example, you might want it while you’re still paying off your mortgage.
If that’s the case, then whole life assurance probably isn’t a cost-effective option for you because it’s a permanent life insurance.
You could think about getting term life insurance instead.
The amount of cover you’ll need from your whole life insurance might change as you go through life. If you pay off your mortgage, for example, your family might not need as much.
Or, if you start having children, you might decide to get whole of life insurance that offers more cover.
Insurers usually let you review your whole life policy after a set amount of time, such as 10 years, or if your circumstances change. For example, if you move home, have kids or get married. You should talk to the life insurance companies about this option when you set up your whole life policy.
Even if you don’t want to change how much cover you have, you might find that your premiums still go up, due to your changing age and health.
The price varies depending on your age, medical history, and how much cover you want. Here are some ideas on how to cut the cost of life insurance.
You could consider getting a joint whole life insurance policy as it’s usually cheaper. You don’t have to be married or in a civil partnership to take one out, unmarried couples and even business partners can buy a joint life policy. But remember that these only pay out once – after the first person on the policy dies. A joint policy is usually cheaper than two individual policies.
You’ll probably find it harder to get accepted if you have a poor medical history. Health issues can also make whole life insurance more expensive.
You should get as many whole life insurance quotes as possible, until you get accepted for the cover you want for a reasonable price.
Yes, in almost all cases. The only reasons your whole life insurance might not pay out would be if you lied when you set up your policy, or your cause of death wasn’t covered.
For example, if you don’t tell your insurer about your pre-existing medical conditions or your family’s medical history, you might not get a payout.
It’s important to check which causes of death are covered by your policy before you apply.
Different life insurance companies and policies have different exclusions that mean you won’t get a payout. The exclusions might include death linked to alcohol or drug abuse.
Yes, whole of life insurance should pay out - unless you lied on your application, your cause of death is not covered by the policy or you miss your monthly payments.
Yes, you can get a joint whole of life insurance policy but it only pays out once, after the first person on the policy dies. A joint policy is usually cheaper than two individual policies.
Yes, you can get whole of life insurance if you have poor health, but you may find it harder to get cover and it can be more expensive. Get as many quotes as you can until you are accepted for the cover you want.
I wanted a lot of extras like curtesy …
Easy site to navigate and quick and…