Whole of Life insurance Is an insurance cover that protects the person insured up to age of 95 years. The customer will pay the premium amount for a defined term and will enjoy the protection for whole of life. This provides optimum coverage especially during the later stages of one’s life where death risks become very high.
This type of insurance is investment linked (Unit Linked or Interest Sensitive) where the function of the investment is to sustain the life cover up until the age of 95. Additionally, the investment ensures that a cash value is accumulating and available for encashment in the event where the insured person decides to exit the plan before policy maturity.
To ensure your policy covers all eventualities, there are additional optional benefits available to make your plan as unique as you are. These additional benefits include Critical Care, Permanent Total Disability, Waiver of Premium, Spouse Term Rider, Accident and Hospital Care, and Income benefits.
There are various factors that are taken into account when calculating the amount of life cover you will need. These include:
- Your income
- Your monthly living costs (mortgage, food, clothing, transport, etc)
- Allowances for future expenses such as education costs and settling debts
- Any costs relating to your death – uninsured medical bills and funeral costs
- Costs associated with bringing up a child
The cost of your insurance policy (i.e. the premium you will be required to pay) is dependent on a number of factors:
- How much cover you need
- The tenor of cover you require
- Factors such as your age, occupation, gender, medical condition, travel and hobbies
- Your health and lifestyle, including whether you smoke or not
- The benefits you select (e.g. Life Insurance, Critical illness, Waiver of premium, etc…)
In the uncertain world that we live in, there are so many advantages of taking a life insurance policy, including:
- Security of your own life as well as the lives of loved ones against future mishaps
- Provision of a replacement income if the main breadwinner dies
- Repayment of any debts left behind such as a mortgage
- Provide a lump sum for dependents to use at time they most need