By: Alicia Bentley
Submitted: 2010-01-28 08:06:40 | Word Count: 511
Whole Life Insurance policies are designed to pay out a agreed amount on death whenever that should be. Unlike Term Assurance which will insure you for an specific amount of time, for example while your kids are young and dependant on you, Whole Life Insurance continues until death. The main benefit of such a policy is that there is a guarantee of payout payment, as long as the policy premiums are paid up to date and on time and all relevent facts are discolsed and upto date. The one thing that is guaranteed is that everyone dies, and therfore payment from these policys is certain.
Why would someone choose a Whole Life Cover? Many use this sort of cover to pay inheritance tax. Others use them to pay for final expenses such as funeral costs. An average cost of a funeral is 5923 pounds. Funds for the funeral would normally be required quickly therefore a whole of life insurance policy set up in trust could satisfy this need.
20,000 individuals estates incurred an inheritance tax liability in 2008/2009. Over 2.8 billion pounds was paid to the HMRC in 2008/2009. Inheritance Tax can be paid with the proceeds of a Whole of Life policy, therefore leaving the beneficiarys of the deceased's estate the full value of the estate as the insurance cover will have paid the Inheritance Tax.
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Whole Life Insurance can be used for much more than Inheritance Tax planning however. It can also be used for family protection, funeral costs, gift allowance as opposed to investments and savings, business protection succession. It can also be used with lifetime mortgages and those with permanent dependents such as disabled children.
If you have been looking around online for quotes for whole of life insurance then you will find that most of the price comparison websites do not offer quotes for this policy. The poliys are very complex and need to be discussed with a Financial Adviser..
Most of the online price comparison websites stay away from whole of life insurance policies. Unlike other types of cover such as Term Life quotes and income protection whole life insurance cover has to be applied for by means of a paper application. This is too costly for the big comparison sites and therefore they tend to stick to the basic covers.
However whole of life insurance plays a very important part of protection planning. The way we work is to compare the UK's leading whole of life companies for you. Once we have found you the best deal the application is filled out over the phone on your behalf and then submitted to the insurer for you
At all times you will be dealing with a fully qualified financial adviser and you can therefore expect to receive advice from a qualified professional. Unlike term insurance whole of life policies are guaranteed to pay out and thus offer good value for money if you include the sum which will eventually be paid out.
Whole Life Insurance policies are designed to pay out a agreed amount on death whenever that should be. Unlike Term Assurance which will insure you for an specific amount of time, for example while your kids are young and dependant on you, Whole Life Insurance continues until death. The main benefit of such a policy is that there is a guarantee of payout payment, as long as the policy premiums are paid up to date and on time and all relevent facts are discolsed and upto date. The one thing that is guaranteed is that everyone dies, and therfore payment from these policys is certain.