Life is full of uncertainties, and we understand that you want to protect your loved ones from the unexpected. Whole life insurance is just one way to provide for your family when you’re no longer around.
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What is whole life insurance?
Many life insurance policies only protect you for a set number of years, perhaps 10 or 20. This is called term insurance. In comparison, whole life insurance, or whole of life insurance, provides cover for your entire life.
A whole life plan can provide for your family when you’re no longer around, paying out a lump sum to cover the cost of your funeral, inheritance tax, or outstanding debts. It can offer financial security for your loved ones and even provide a financial gift to your family or your charity of choice.
Whole of life insurance vs. term-based life insurance – which is best for you?
Whole of life insurance isn’t your only option. Term-based life insurance may be a better fit for your needs, but it’s worth considering the pros and cons of each type of insurance before making your choice.
Term life insurance – the pros and cons
Term life insurance is a type of policy that provides cover for a specific period of time, generally between 10 and 40 years.
Pros:
Term life insurance is generally less expensive than whole of life insurance. This makes it an attractive option if you want to make sure that your loved ones are protected in the event of your death but you don’t want to pay high premiums.
A term policy may be helpful if you only need a life plan for a specific reason, like paying off your mortgage.
Cons:
If your health deteriorates, it may not be possible to renew or extend your term policy once it expires, or you may be asked to pay higher premiums.
The benefits and downside of whole of life insurance
Whole life insurance covers you for your entire lifetime and will provide a lump sum to your family if you die.
Pros:
Whole life insurance offers lifelong protection and can be a good investment option for those who want to build up savings over time.
Cons:
Whole of life insurance is generally more expensive than term life plans.
You may have to pay into your policy for one or two years before the entire payout is guaranteed. If you die within this period, your beneficiaries may only receive the premiums you paid in or a reduced amount.
What’s right for one person may not be suitable for another
Here at The Insurance Surgery, we never expect you to know which type of insurance is best for you. What works well for one person may not be suitable for another.
That’s why we take the time to talk in detail about the different types of life insurance plans.
We want you to feel confident in your decision.
You and your family deserve to have full financial security, and we’ll do whatever we can to make this happen.
As independent life insurance brokers, we can talk through all of the available options. We can match you to an insurer who will give you the cover you need at the best possible price.
And when the time comes that your family needs to make a claim? We promise we’ll be there every step of the way, making the whole process as easy as possible from start to finish.
Is whole life insurance expensive?
Whole life insurance generally costs more than term life insurance. This is because a whole-life policy covers you for your entire lifetime.
- Your age
- Do you have any medical conditions?
- Are you a smoker?
- Your job
- The amount of cover you require
The Insurance Surgery will take the time to discuss your circumstances and needs to make sure we can find the best fit insurance policy for you.
But we know you want to have an idea of how much whole life insurance costs before you pick up the phone.
Let’s look at two examples of how much a whole life insurance policy can cost.
Whole life insurance example cost #1
Tina is 50 years old. She’s interested in a whole life insurance policy with a maximum payout of £45,000. She has no children but wants to make sure that her partner is provided for should she die. She has two years left to pay on her mortgage. She has around £29,000 in debt, including the outstanding mortgage. She works as a PA, with a salary of £27,000. She has never smoked.
Tina’s monthly premiums are £52.53
Tina would pay £630.36 per year.
£52.53 per month | £45k payout
Whole life insurance example cost #2
Robert is 36 years old. He works as a policeman, with a salary of £34,000. He gave up smoking three years ago. Robert has recently lowered his BMI and lost 2 stone. He is married with two children. There are 18 years left on his mortgage. He has debts amounting to around £30000, including the outstanding mortgage. He is looking for a whole life policy valued at £50000 to provide for his family should anything happen to him to cover the mortgage and funeral costs
Robert’s monthly premiums are £36.87
Robert would pay £442.44 per year
How much
whole life insurance
do you need?
This is one of the first questions that we’ll ask.
Often, most people can’t answer it straight away because it’s the first time they’ve ever researched life insurance.
We get it.
Life plans aren’t like car insurance, where you renew your premiums each year, and you get to know what you’re looking for.
That’s why our team of experienced life insurance brokers are here to help. We can grab our calculators and help you work out how much insurance you need.
The amount of cover you need will depend on your personal circumstances and how you want to support your family once you’re gone. One way to arrive at a figure for the final payout is to consider the following questions:
- How much money do you and your family spend each month?
- How much income do you and your family make each month?
- How much do your current debts amount to?
- What belongings do you and your family own?
- How many people depend on you for money and support?
- Are you eligible for any death-in-service benefits from your employer?
- How much will your funeral cost?
- What level of financial support will your loved ones need when you’re no longer around?
At The Insurance Surgery, we can work with you to arrive at a figure that will fully support your family once you’re gone.
Once we’ve worked this out, we can then search for a life insurance plan that will match your expectations as well as your budget.
Can you take out a joint whole-of-life insurance policy?
Yes, you can take out joint whole of life insurance.
A joint life insurance policy covers two people under one policy and pays out a lump sum to the surviving partner on the death of either. It offers financial security to you both and can be used to cover expenses such as bills, mortgage repayments, and other financial needs.
The cost and coverage of joint policies may vary depending on the personal circumstances of both of you, such as age, health, and the amount of cover required.
If you’ve recently got married, or you’re in a long-term relationship with a partner, now is the time to take out a life plan. The younger you are when taking out insurance, the cheaper your policy will be.
Which whole life insurance is best?
There are many different insurance providers available who offer great whole-life insurance plans.
But the right insurer for you will depend on your personal circumstances and needs.
We see ourselves as matchmakers.
We love finding that perfect match between you and an insurance provider when we know that the policy is exactly what you’re looking for.
The Insurance Surgery works with a wide range of companies (including high-street names and independent firms), and we have access to policies that are not available to the general public.
This means that we can find the best insurance policy to meet the cost, cover, and insurance conditions that you need.
What information do you need to know to set up a whole life insurance plan?
When you contact us to set up a whole life insurance plan, we’ll ask about your personal circumstances so that we can find the best-fit insurance policy for you. Generally, you can expect to be asked about:
- Your age
- Your job
- Your general health and any existing medical conditions
- Whether you’re a smoker
- How much cover you’d like the policy to pay out
- How much debt you have, including your mortgage
- Your dependents
- Your salary
It’s always useful to have this information to hand before you get in touch.
Why whole life insurance is a great investment
Whole life insurance can play an active role in planning for your family’s future. Here’s why whole life insurance is a great investment:
- It provides long-term financial security, ensuring that your loved ones are financially protected in the event of your passing.
- Whole life plans may offer flexible premium payment options and the opportunity to alter coverage as your needs change.
- In certain circumstances, your policy may be used to pay your family’s inheritance tax liability before your estate is transferred to them.
Whole life insurance provides a valuable investment opportunity that can protect your loved ones and their financial future.
How can The Insurance Surgery help you to find the best whole life insurance?
The Insurance Surgery is a leading insurance broker for whole life insurance. We work with a wide range of insurance providers to get the best life insurance policy for your needs and budget.
We don’t provide our insurance quotes online. Instead, we offer a personalised service over the phone, taking the time to get to know you and exactly what cover you need. Working with our extensive pool of insurance providers, we often have access to policies that aren’t available to the general public.
We’ve been helping people all over the UK find long-term financial security for themselves and their families for over twenty years.
We promise:
- A dedicated advisor who is there to answer all of your questions.
- Free service from Trust that lets you set up your insurance payment however you want.
- Help for people who already have pre-existing health problems.
What’s more, here at The Insurance Surgery we are widely recognised for our reputation.
- Voted Best Insurance and Life Broker 2022.
- Trustpilot and Feefo both gave it 5 stars.
- Access to both big-name and small-scale insurers.
- Price match guarantee means you won’t pay a penny more than you have to.
But maybe most importantly, at The Insurance Surgery, we have helped people who have been turned down for life insurance in the past. We have taken in a huge 70 percent of the people who were turned down elsewhere.
We love being able to solve problems. In fact, our problem solving is why we are rated so much higher than online comparison websites.
During our conversations, we will take the time to learn about you and your health. If you are affected by a pre-existing condition, we’ll do whatever it takes to secure you a life plan. By finding out as much as we can, we can give the insurance underwriter the information they need.
By going that extra mile to find that additional information, we are confident that we can help you if you’ve previously been turned down for life insurance elsewhere.
Most Common Questions
We answer your most frequently asked questions.
Whole life insurance can be a valuable investment if you want long-term financial security and peace of mind. Whether whole life insurance is worth it compared to a term policy depends on your circumstances and financial goals. It’s always recommended that you talk to a financial advisor or insurance professional who can assess your specific needs and provide personalised advice.
Whole of life insurance covers you for your entire lifetime, providing a lump sum to your family on your death. This lump sum can help your family cover funeral costs, pay outstanding debts, or simply maintain their quality of life.
This depends on your personal circumstances and goals. Whole life insurance provides lifelong protection. Term life insurance is generally less expensive and especially useful if you only need life insurance for a specific reason, like paying off your mortgage.
No, whole life plans do not expire. Unlike term insurance policies that cover you for a fixed period of time, whole-life policies are permanent and last until you pass away. This means you don’t have to worry about buying a new policy or extending your existing one. Whole life plans provide lifelong coverage and a lump sum for your loved ones when you die, as long as you continue to pay into the policy.
The main difference between life insurance and whole of life insurance lies in their duration and payout structure. Life cover, also known as term life insurance, provides coverage for a set period of time, such as 10, 15, or 20 years. It only pays out if you die during that period. On the other hand, whole of life cover protects you for your entire life and guarantees a payout to your loved ones when you pass away.
Useful Links
If you have any further questions about anything to do with Whole Life Insurance and protection for your family, please feel free to contact our team of expert Life Insurance advisors.
Click the links below to find out more: