Whole life insurance

Whole Life Insurance provides guaranteed coverage as long as the necessary premiums are paid. These policies are designed to last over a long period of time either until the death of the policyholder or over a specified amount of time, for example, until the policyholder retires. They are designed for people who want to cover long-term needs, such as pensions, final expenses or for protecting financial assets. It also allows a possibility of building up a cash value, so you can take a loan from your insurance company on your policy if you want. In general the death benefit from the insurance is tax-free.

Whole life insurance carries higher premiums than other forms of life insurance, as the insurance company will definitely have to pay the policyholder. Premiums do not increase with age but they can be expensive for older people and those in ill health. Normally you will not be able to increase the amount of cover after the policy is taken out. If you decide later on that you can afford to pay more, you will have to take out another policy, as you cannot vary your monthly payments.