Whole life insurance is a type of life insurance policy that provides guaranteed lump sum payouts to beneficiaries upon the policyholder's death, no matter when the death happens. Unlike other types of life insurance policies which are limited in terms of cover and duration, whole life insurance provides lifelong protection and assurance of financial security for loved ones.

Premiums are usually paid on a monthly or annual basis and beneficiaries will receive the payout as long as all terms and conditions of the policy are met. Whole life insurance policies also offer additional add-ons such as early access to funds in cases of illness or dementia if you are unable to care for yourself.

The cost of these policies vary depending on factors such as age, height, weight, smoking status and any high-risk occupations. Joint life policies are also available which protect the financial future of couples in case one partner dies.

How do I get the whole life insurance paid out?

When the insured person passes away the beneficiary should contact the insurance provider as soon as possible, this will then start the claims process if all documents are prepared. There are 3 stages to the claims process, these are:

1. Contacting the insurance provider - The beneficiary will need confirmation of who they are, the insurance policy number, the contact details of the insured person’s GP, and confirmation of their relationship with the insured person
2. Claim form - When a claim is processed a claim form is to be completed, further information may be requested depending on the type of claim, like a death certificate for example
3. Payment - The beneficiary will receive the payment once the claim and the paperwork is completed. Life insurance pay outs are usually subject to 40% inheritance tax if the deceased's total estate exceeds the £325,000 threshold unless the policy is written into a trust

Whole life insurance is a great way to ensure your family will be taken care of financially even after you've passed away, and its guaranteed payouts make it worth the added cost for many people.

It is important to compare different policies and quotes carefully before purchasing a life insurance policy, to make sure you are getting the best deal. Make sure you read the terms and conditions of the policy thoroughly so that you understand what is and isn't covered. Working with an expert financial adviser can also be beneficial in finding the right whole life insurance policy for you.

Once you are certain that a whole life insurance policy is the right choice for you, take the steps necessary to ensure your family's financial security and peace of mind even after you're gone.

For more information on the different types of insurance we offer, see our page here

We are based in West Derby Liverpool, if you wish to discuss your options with us, feel free to contact us on 0151 662 0188 or send us a quick email with the type of insurance you would like to apply for, on [email protected] and we will set up an appointment with you.