Importance of Whole of Life Insurance

Have you thought what would happen if your income suddenly stopped, or was drastically reduced? It is uncomfortable to think about, but how long could you maintain your lifestyle if you were unable to work. In this case we all need protection. It is simply life insurance. It is  a protection for a better future of the family.  Protecting the future of the family should start while you’re still young and earning.  Protection may vary into two option: (a)term assurance (b)whole of life.

Whole of Life insurance is a protection with return of premiums.  It has both an insurance and an investment component for the person insured.  If something happened to the insured person the death benefit will be given.  The investment component also accumulates a cash value that the policy holder can withdraw or borrow.

Whole of life is a protection in which we can be covered for all the following benefits…….you may include critical illness, permanent total disability, hospitalization benefit, accidental death benefit, long term care benefit, family income benefit, and waiver of premium.  Certain benefits which you cannot find in the the term assurance.  In this benefits that we get in whole of life critical illness will cover you until the age of 95.  Whole of life is the right protection plan that  can help to safeguard our family’s financial future.

Whole Life Policy

How The Policy Works

Whole life policy refers to permanent life insurance as it provides life-long protection and guaranteed sum assurance. For choosing whole life policy, you have to pay a fixed amount of premium for life rather than the increasing premiums found on renewable term life insurance policies. Technically, whole life insurance is not related to term life insurance.

Whole life policy offers cash values, which is the cash available to you if you need cash any time. The premiums in this policy are higher than term life premiums and are guaranteed to remain level for as long as you own your policy.

As long as you pay the premiums, the death benefit will be allocated. Whole life policy is intended and priced for you to keep over a long period of time.

Always remember that if you’re not sure that you’re going to keep this kind of insurance policy or you think that this is a wrong type of insurance for you. In that case, you should look at term life insurance.

Whole life policy ensures something that will unfortunately happen for certain – one’s death, where as Term insures the possibility of you dying during the term period, whether that is 1 year or up to 30 years depending on the type of term insurance you get.