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This won’t affect the payout sum as the investment element of most policies is an added benefit to the policy. If you wish, you can withdraw some of this cash tax-free. That means it could become a form of equity if the cash value grows. Many whole of life insurance policies also let you invest part of the money from your premium. These include age, gender and health for example. The price of your premiums depends on several factors.
The options available depend on your provider. You can make payments until you die, for an agreed time or as a one-off payment. In exchange for this premium, you will receive a payout in the event of your death.ĭepending on the policies of your insurer, you can pay these premiums monthly or yearly. If you would like whole of life insurance, you’ll need to pay a premium, the amount will vary from insurer to insurer. This guarantee is why whole of life insurance is also called life assurance. That is so long as you have cover for the condition. With whole of life insurance, a payout is always guaranteed whenever you die. Your beneficiaries won't receive a payout if you die before your term life policy runs out. Whole of life guarantees a payout after you die. The difference between the two policies is that term life covers you for a fixed period of time. A similar type of cover is term life insurance. If the policyholder dies, whole of life cover pays a lump sum to their family or beneficiaries.
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Whole of life insurance is a policy that lasts for the policyholder’s lifetime.