Suite 411, Kingfisher Centre, Burnley Road, Rawtenstall, Lancashire, BB4 8EQ, United Kingdom
info@artfullodger-liverpool.co.uk
0845 123 55 34
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Artful Lodger Liverpool Ltd Suite 411, Kingfisher Centre, Burnley Road, Rawtenstall, Lancashire, BB4 8EQ, United Kingdom info@artfullodger-liverpool.co.uk 0845 123 55 34 |
Whole of Life versus Term AssuranceTerm assurance, as you would imagine, is for a specific term and has no investment element and therefore no return.This is the "no frills" approach but it does have two main advantages: 1.It is cheap. 2.The premiums can be guaranteed not to increase (provided you pick the right provider). If you need help in finding the right provider then email us at Artful Lodger Liverpool As you would imagine the reverse is true in many aspects of whole of life as you have an investment element that would normally return approximately half your premiums at around age 65. Obviously this can be more or less than this. The premium is reviewed each year so if the performance is not so good, or the life company's mortality rate increases, then the life company can increase your premiums. However any increase would not usually happen for at least ten years. Having said this, whole of life has three significant advantages. 1.You are guaranteed to be insured for as long as you live. This has obvious Inheritance Tax planning advantages. 2.You may get back more than you paid in if funds do well. 3.It is easier to put inflation proofing on to the contract. Whole of life is most useful if there is likely to be an inheritance tax liability. One last point on whole of life is that you can either opt for a balanced or maximum approach. A balanced approach means that provided the reviews go as planned then the premium will not increase over the term. A maximum basis is like a low start in that the premiums will remain the same for the first ten years after which they will increase quite dramatically at each review. You will have the option of either maintaining the life cover at a higher premium or maintaining the premium and dropping the cover. Other financial products include |
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