Whole-of-Life Assurance pays out a specific lump sum at the time you die, whenever that should be. Unlike term assurance, this type of policy is not limited to a particular period. This policy supplies extensive protection; you know your family is financially protected whenever you should die. As long as you maintain the policy there is a guarantee that, on your eventual death, the sum assured will be paid to your estate.
Premiums are usually paid monthly, and must be maintained in order to ensure cover remains in place. However, they tend to be more expensive, as it is certain that the insurance company will eventually pay the sum insured.
Some policies you will require you to pay the premiums until you die, but others will allow you to stop paying at a certain age (say 65 or 80) at which point the policy becomes "paid up". Although you will have stopped paying the premiums, the insurer will still pay the sum insured when you die.
Whole life insurance can be arranged with or without profits or can be unit-linked.
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