What is term life insurance?

Term life insurance is easy enough to understand.Choose a term and an amount of cover – say 35 years and 500k – pay for your life insurance during those years, survive those 35 years and, well, you no longer have life insurance, but you’re alive.Well done you, have a biscuit.If you die, no biscuits, but your family gets half a mill tax-free cash.Easy right?You are insured for the term of your policy.Term life is the cheaper life insurance out of all options, as the likelihood of you outliving your policy is high, so the risk of a payout is lower.To compare the cost of the different insurance options, I will use Joe Average, 35, non-smoker, no health issues, buying €500k over 35 years.Quote Type: Life InsuranceFirst Person: Non-Smoker, born on 11/03/1987Cover Amount: €500,000 paying monthly, over 35 years.

So, what is whole-of-life assurance?

Whole life cover, however, covers your entire life from the start of your policy to the day you croak it.A payout is assured if you continue to pay the premiums.Sounds pretty straightforward, but no, there are different types of whole life covers too.Just.Because.So, let’s break them down into itty bitty bite-sized chunks because some of them are great, others you’ll want to avoid, like a Bounty bar in a box of Celebrations.

So Which Is Best? Term Life or Whole Life Insurance?

If you want to get your money’s worth, I suggest guaranteed term life cover with the whole of life add-on. It offers the best of both worlds.For me, term life is too limited.Yes, it offers financial protection for a couple of decades, but if you want to extend the policy, it will inevitably cost a lot more because you’re an old git now.Yes, the insurers will offer a conversion option where you can extend your policy without providing further medical info. However, they will still recalculate your premiums based on your future age, which will cost an arm and a leg.But that’s just me.I’m a lazy sod, so why would I add an extra to-do in the future when whole life cover does the job from beginning to end and can pay out more than I pay in.

Life Insurance Archives - Page 9 of 9

What’s the Difference Between Term and Whole of Life Assurance?

Life insurance is life insurance, right?

Well, no.

It would make far more sense for insurers to create one singular type of life insurance to avoid confusion and complication.

But if we know anything, it’s that insurance companies love complexity.

So let’s try and decipher what’s going on.

Confidential Life Insurance

A little birdie told me that you’re holding back on life insurance because you’re worried about discussing some health issues you have.

That’s awful, but I understand.

First, any insurance broker worth their salt shouldn’t make you feel uncomfortable about personal health issues, but I’m sure this won’t quell the fear.

So how about if I told you one of our rather clever insurers now offers an app that means your broker has ZERO access to your medical information.

That’s right.

With Appy, a new medical underwriting app, insurance advisors have less involvement in your medical history.

Life Insurance

What’s the Difference Between Term and Whole of Life Assurance?

Confidential Life Insurance

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