A whole of life insurance policy typically may cover you for the whole of your life and pay out a lump sum if you die. Some policies, with an added critical illness insurance element, may also pay a lump sum upon confirmed diagnosis of a critical illness. When looking at whole life insurance quotes there may be some benefits for you to consider;
- guaranteed payment. With a whole life insurance policy provided all the premiums are up to date then there is a payment when the policy comes to an end (although do note that some policies may have an upper age limit, such as 90);
- security for your family. A lump sum may give much needed financial security to your family should you die;
- funeral costs. A lump sum could be put towards payment of funeral costs which may be expensive;
- nominated person. You may be able to nominate any lump sum payment to go to the person of your choice;
- charity giving. Some whole of life insurance policies allow you to nominate a charity to receive a lump sum payment upon your death;
- cash loan. Some policies give you the option to take a cash loan against the policy should you need it. When you are looking at life insurance quotes you may wish to check for this clause;
- early surrender options. Some policies offer a payment if you choose to surrender your life insurance policy early;
- taking cash out of the policy. Some policies give you the option to take cash out of the policy provided you have been making payments for a required period. This may influence what the policy is worth at the end of the period;
When you are looking at whole life insurance quotes you may wish to check the terms and conditions of each policy so that you understand what is included in the policies you are considering. Comparing policies may also help you to get a competitive quote.
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