Borrow money against your payout with whole life insurance
Whole life insurance is very much the second most popular form of life insurance offered in the UK, lagging a long way behind term life insurance, with cost being no small part of that decision. Whole life insurance costs customers around 8 times more than a term life insurance policy, and also leaves many customers asking why they should pay more to be covered when they don’t need it.
Protection when it’s needed
Term life insurance was designed to offer customers protection when they needed it the most, during the time when they have children at home and a mortgage to pay, and after that point many people admit there is little use for a life insurance policy.
Whole life insurance certainly has its fans, including the people who want to see a return on their investment, something they can only guarantee if they take out life insurance for their whole lives.
Borrow money against the final payout
Another huge advantage of whole life insurance is the ability to borrow money against the final payout in later life. Customers who reach a stage in their life where they no longer need the full payout to be left behind, often as the people it would have been left to are now financial secure in their own rights are able to borrow some of their payout before they die.
The money can be used for any reason, with some using the money to give to children and grandchildren to pay for house deposits, and others using the money to pay for retirement after their pensions have let them down.
Travel the World
Some people simply use the money to travel the world, enjoying the sights and culture whilst they are still alive and making everyday count.
World of Possibilities
Whole life insurance is more expensive, but it does open up a whole world of other possibilities in retirement, which for the people who pay for it make it well worth the money.