Skip to main content

What is whole life insurance?

If you are a little confused by some of the terminology surrounding whole life insurance and life cover in general, you may find the following to be of use.

Whole life insurance: It is a form of cover that will pay out in the event of your death - at whatever age that may be (some policies may have upper age limits of 90 or 95 years etc).

What is the difference between life insurance and life assurance?

In modern times, the two terms are becoming increasingly used interchangeably to mean the same thing.

Technically, there is a difference. Life insurance covers events that may or may not happen. This would therefore be appropriate for, say, joint life quotes where the policy ran alongside a mortgage for perhaps 20 years.

During that period of time, the policyholders will typically hope to survive but wish to protect their interests just in case of their premature death.

By contrast, whole life insurance covers an event that is a certainty, the policyholder's eventual death, though when that will happen is not known. That is, therefore, technically life assurance.

What is term life insurance?

This is simply life insurance that is valid for a specific period of time (unlike whole life cover) - commonly called the term.

There are various forms of such cover typically available including level term cover (where the sum payable remains the same for the whole period of the policy) or decreasing term cover (where the sum payable reduces over time because it is typically aimed at covering the reducing debt on a mortgage).

What are joint life quotes?

It is possible to insure a couple based upon their joint lives. Should one or the other die during the term of the policy, it will pay out to the surviving policyholder.

These are commonly seen where there are joint property and/or family commitments.

Why are medical examinations and questionnaires required?

In fact, they may not be though medical declarations are relatively common and some situations may require a medical examination also.

These arise from the basic fact that insurance is meant to offer financial protection against events or circumstances that have not yet happened.

If you are, for example, suffering from a previously diagnosed potentially life-threatening condition at the time you apply for life insurance, then the insurer has a right to know that, as it may significantly change the risk profile of offering you cover.

They may then offer you cover on special terms or they may decide not to cover that particular condition - that will be a matter for discussion between you.

This is perfectly normal but it is important, whether you are taking whole life insurance or any other form of cover, to honestly and completely respond to all health related questions.


Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

What are the Consequences of Overspending in Life?

How overspending can ruin your financial life? With today’s expenses and their prices, it can be very hard not to overspend. Still, that isn’t an excuse to stray out of your budget. You know why? It is because overspending can only lead to more problems than you think. Overspending can affect your whole life. With all the possible consequences, it may jump from one problem to another. Unpaid bills All the excessive shopping with your credit card can cause steep bills at the end of the month. If you keep on using your credit but don’t have enough money to pay for it in the end, then you’re surely in for a huge financial disaster. This will turn out to be missed payments, and missed payments will ruin your credit report. Missing out on payments will get your credit report marked for 7 years or more. And you can’t get rid of them by finishing them off. Credit report Overspending can cause a chain reaction of events. Once you get your bills due to overspending, it’s possible for you to mi

The Top 4 Reasons People Fail at Budgeting

Budgeting isn’t easy, and many people experience difficulty trying to get the most out of this essential financial tool.  While the concept may sound simple, adhering to your budget could be a lot harder than you might think.  To help you experience success, here are the top 4 reasons why people fail at budgeting .

How does a Prepaid Credit Card work?

Can They Really Be a Solution to Avoiding Credit Card Debt? When it comes to plastic, there are a lot of choices out there. Not only do you have the choice of credit card , debit card, or prepaid credit card, but you also get to decide which financial company you want to use as your card provider. Credit cards and debit cards are both risky. Credit cards can help put you deeper into debt, while debit cards give thieves and collectors access to your entire bank account. A growing number of people are finding that prepaid credit cards are becoming the best option. What Are Prepaid Credit Cards? Prepaid credit cards look and act just like a credit or debit card, except you put the money on the card before you make any purchases. You are only allowed to spend as much money as you have pre-loaded on the card, which means that you are not at risk of going into credit card debt from overspending. These cards also keep your money safe, because thieves will be limited to the amount that is on t

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

How to Raise Money in Tough Times

The economy is in a pretty hard place for everyone at the moment. Each day, it can seem as if everything’s getting more expensive , while the amount of cash in your pocket just isn’t matching up to this change in lifestyle. Rather than sitting back and doing nothing, it makes sense to tackle the problem head on by looking at clever ways to get more money coming in to beat the ailing economy.