Whole life insurance makes total sense on paper
When deciding what sort of life insurance to buy, you’ll end up looking to leading life insurance websites like this one to find comparisons between the different types of cover. Indeed here we have written hundreds of articles about the different types of life insurance in an attempt to help you shed some light on your own decision.
When you draw out the pros and cons of the different types of life insurance on paper, and entirely ignore the costs of the policies there is only one winner. Whole life insurance.
Whole life insurance offers customers life insurance for their whole life. It’s not just a policy that runs until the end of your mortgage, and if you die two weeks after the end of the cut off for your policy, you’ll still find your family is able to make a claim with whole life insurance, which they won’t be able to do with term life insurance.
Whole life insurance also offers customers a guaranteed return on investment, and most policies don’t even see the customer pay as much in, as they get out, because the insurance company can invest the money you have paid in whilst they wait for you to live your life.
You’ll also still get a full pay out if you die young, so you are effectively getting a guaranteed investment on the money you are paying in, and a life insurance policy in one, whilst term life insurance customers only get a life insurance policy, and if they never have to make a claim, they’ll never see a return on their investment.
Whilst whole life insurance appears a much better bet on paper, unfortunately it boils down to cost, and many people simply don’t want to spend a lot of money putting money aside, despite knowing that it will be paid back, with interest to their loved ones when they die.
Others simply can’t afford to, especially as whole life insurance costs around eight times more than term life insurance.