Whole of life insurance vs Term life insurance

When investigating life insurance you will surely come across the terms "whole life" and "term life".

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Can I get an Instant Quote for Life Insurance?: No - not through this website, because we believe that to get the right life insurance, you need to talk to a professional.
If my life insurance policy is “Rated”, what does this mean?: If your policy is “rated” it means that the insurance company believes you represent an above average risk of a claim.
What is Life Insurance?: Life Insurance (with terminal cover included) is a form of insurance that pays out a lump sum if you die or fall terminally ill during the period covered by the policy.
What is Mortgage Payment Protection Insurance?: Mortgage Payment Protection Insurance will pay your monthly mortgage repayments if you were off work because of sickness, an accident or unemployment.

Knowing what these life insurance products are and what they can do for you and your family is very important when deciding upon the type of policy to buy.

Whole life

Life insurance of this type is used as a vehicle for investment as well as life insurance. A whole life policy builds cash value. Depending upon the policy it is possible to ( remortgages ) cash it out or, in some cases, to borrow against it.

Is whole life advisable?

Purchasing a whole life policy does cost more. Not only are you paying for life insurance you are also paying for an investment tool; this may burden the policy with additional fees and expenses associated with making the investments. Further, the return on whole life investments may not be as great as the return on standard investments. Often calculating the amount ( secured loans ) of the premium which goes toward the investment may be difficult along with the return on investment.

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