What is 'whole of life' insurance?

What is 'whole of life' insurance?

As the name suggest 'whole of life' insurance policy is designed to pay out to any stage in your life whenever you are to pass away. What it does mean though is that because it is guaranteed to pay out, should you keep the policy paid in full it will cost you more than if you took out a conventional term of insurance because you are definitely going to claim on it. There is a certain amount of investment element to a 'whole of life' policy as well. If you did actually cancel or stop the policy and you wanted to cash it in, you may get some return . It is always worth remembering that 'whole of life' policy is designed as a protection plan and not as an investment, so that any cash back you may get certainly in the earlier years isn't nearly as much as in the premiums that you have paid.