Whole Of Life Insurance

Whole Of Life Insurance

Whole life insurance, or whole of life assurance, sometimes called "straight life" or "ordinary life", is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date. Whole-of-life policies are designed to provide a sum of money (the sum assured) to a customer's family or estate when the customer dies. The customer pays either a lump sum at the outset or a premium every month.

  • pays out a death benefit that can be used by beneficiaries for any purpose they choose

  • Higher premiums than term life insurance

Positives

  • the cash value is guaranteed to grow at a fixed rate

Negatives

  • often takes over a decade to earn reasonable investment returns.

  • help loved ones pay an inheritance tax bill on your estate. It can also provide valuable funds to cover funeral expenses, pay off debts.

  • A more complex product than term life insurance.