Yet there are key differences between the two that anyone wishing to purchase life insurance should be made aware of.
Level term life insurance pays out the guaranteed sum assured should you die during the term of the policy. You can buy term assurance from as little as a few pounds a month. The downside is, of course, that it only lasts for a given term – usually anything up to a maximum of forty years or until the policyholder reaches the age of eighty.
A whole of life policy is one designed to run, unsurprisingly, for the whole of your life which obviously is an indefinite period of time. Due mainly to this fact, you will find that whole of life insurance is quite a bit more expensive than a comparable term assurance plan.
Whole of life insurance can seem expensive compared to term life, but the feeling of security over a lifetime through the policy is often encouraging to those who buy it. Also, for those with long family histories of illness, a term policy may prove to be too expensive to hold when the first term ends and they have to purchase a new one.
Whole of life cover is available for life, critical illness and now also serious illness insurance and purchasing a policy of this type means that whatever happens in the future you are assured of cover.
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