What is Whole of Life Insurance?

Whole of life insurance, also known as life assurance, is a type of permanent life insurance policy that remains in effect for your entire lifetime, provided premiums are paid as specified. Unlike term life insurance, which covers you for a set period, whole of life offers guaranteed lifelong coverage and includes an investment element known as the cash value.

The Power of Cash Value Growth

One unique feature is its cash value component. This value accumulates tax-deferred, meaning you won’t pay taxes on the growth unless you withdraw the funds. Policyholders can often borrow against the cash value or even cash out the policy during their lifetime. However, it’s important to note that loans or withdrawals can reduce the death benefit and cash value, and increase the chance the policy will lapse.

Premium Considerations

Compared to term life insurance, whole of life premiums are typically higher. This is because the policy covers your entire life and contributes to building the cash value. However, the premiums generally remain constant over the life of the policy, making it easier for policyholders to plan their finances.

Who Might Benefit from Whole of Life Insurance?

This type of insurance can be a valuable tool for long-term financial planning. It can serve various purposes, such as:

• Providing for heirs: Leaving a financial legacy for your loved ones.
• Estate planning: Supplementing your estate plan with tax-advantaged funds.
• Diversifying investments: Adding a guaranteed component to your investment portfolio.

Choosing the Right Policy

Before committing to a whole of life policy, carefully assess your financial situation and long-term objectives. Consulting with a financial advisor can help you understand the pros and cons and ensure you choose a policy that aligns with your unique circumstances.

Please contact us for obligation-free advice on any of these types of cover. We can put together a package for you to suit your exact needs and budget. 

Please note for these insurance products terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.