![]() ![]() The insurer may increase your monthly premiums, or reduce the size of the payout your loved ones will receive after you die. If the investments are not performing to the level that the insurer wanted, your cover may be changed. Your premiums will then be reviewed on a periodic basis. The insurer invests the money you pay each month, in the hope that the returns generated from that investment will be sufficient to cover the cost of the eventual payout. With a maximum cover policy, your cover is linked to an investment fund. You will also have a fixed cash sum agreed upon which the insurer will pay out when you die. As a result, your premiums are guaranteed. Even when you get older, and your health may deteriorate, you will still pay the same amount for your cover. With balanced or standard cover, your premiums will stay the same throughout your policy. Whole-of-life policies broadly come in two main types - balanced cover and maximum cover Balanced cover What are the different types of whole-of-life insurance? The actual cost of your whole-of-life insurance policy will be come down to a host of factors about you, such as how much cover you want, your age, your health and your lifestyle. This will vary between insurers and policies, however, so read the terms and conditions of any policy closely before taking it out. That said, many whole-of-life policies will only require you to pay premiums up to a certain age, typically to age 90. If you fail to keep up with your premiums, the cover will be cancelled. You must ensure that you can afford the premiums, not only during your working life but also once you retire. Whole-of-life insurance is generally a more expensive form of life cover than term life insurance or family income benefit insurance, for the simple reason that insurers know they will definitely have to pay out some money at some point. ![]() How much does whole-of-life insurance cost? Our partner LifeSearch has over 20 years’ experience of helping consumers find the right life insurance policy. This is in contrast to term life insurance, which only guarantees that there will be a payout should you die within the specified term of the policy. Whole-of-life insurance is a type of life insurance policy which ensures that, no matter when you die, your loved ones will receive a lump sum payout from your insurer. ![]()
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