Whole Life Insurance

Whole Life Insurance is a form of life insurance that is offered by several insurance companies and advise about such coverage should be you the licensed insurance agent.


Whole Life Insurance is often taken out for family protection purposes to provide a lump sum to the dependents in the event of your death.


Whole Life Insurance provides life coverage as the coverage describes-potentially for the whole of the life, whenever the policy holder dies. The policy will pay out if they maintain the premiums. This is different to Level Term Assurance which usually only pays out if an individual were to die during the term of the policy. Hence the cost of Whole of Life Insurance is usually greater than that of Level Term Insurance.


The premiums for a whole life insurance policy are normally invested in a fund and the cost of providing the coverage is taken out of the fund. Should the policyholder decide that there is no longer any need for the whole life coverage you can cancel the policy and you may receive a lump sum representing the surrender value of the policy.


Whole Life Insurance policies often have other options such as the ability for the level of life coverage and/or the premiums to automatically increase each year. There is often an option to include Critical Illness coverage in the policy so that the policy would pay out either upon earlier diagnosis of a specific critical illness i.e. heart attack, cancer, stroke, kidney failure or upon death which ever happens first.


As can be seen whole life insurance is a flexible policy with many options so, as stated earlier, an individual should seek sound advice from you, the licensed professional as to whether a whole life insurance policy is suitable to meet their requirements

Share this post