Whole life insurance provides fixed premium permanent protection to the policyholder, usually to age 100. The policy will not lapse as long as sufficient premiums are paid to keep it in force. The premiums also contain a savings element. This is invested by the company, and interest earned can top up premiums paid. The cash value stored in the policy can be used to complete all necessary premium instalment payments early or act as security against a policy loan. Loan funds are repayable and can be used for almost any purpose.

Premiums may initially be higher than you would pay for the same level of term insurance cover. However; they do not increase. Whereas with term insurance you can find the premiums increase significantly on each renewal.

Whole life insurance policies are usually appropriate where you need to provide for longer-term financial security. They can help fund retirement or provide income for a surviving beneficiary. It is important to take professional advice when considering life insurance options.