Whole Life Insurance is a comprehensive policy that offers you a guaranteed payout that covers you for your entire life. The amount that the insured person pays per month from its start date is invested and paid out on the day they either pass away or surrender the policy. The death benefit and the premiums you pay will remain the same throughout your cover.
What can Whole Life Insurance be used for?
This type of insurance is mainly used to cover estate-related expenses and income for the surviving spouse. As the insured person can borrow against the policy, it can also be used to liquidate the deceased's consumer or business debts and mortgages, provide the finances for children’s education, and to provide the funds needed for a “buy-sell” to ensure a business is continued.
Is it more expensive than other types of Life Insurance?
Whole Life Insurance is typically more expensive than other types since a claim is inevitable, whether you pass away or surrender the policy. Therefore, the best route to take to ensure you can comfortably meet the monthly premiums is to compare prices to find the policy that best suits your current lifestyle and future needs.