Borrow against your final payout with Whole Life Insurance
When it comes to choosing the right type of life insurance for you and your family, you’ll want to know all the different options available for each type of insurance. Here at life insure we’ve done our best to write a huge range of articles to help you make the most educated decision you possibly can, and that’s why it’s important you know that you can borrow money against your final payout later in your life with whole life insurance.
On paper whole life insurance would win hands down for most customers, until they get to the price, and it’s for that reason that term life insurance is the most popular form of life insurance offered in the UK.
Term life insurance offers customers protection when they need it the most, and provides them that protection at an affordable price. Whole life insurance is different, and offers customers insurance for their whole life, not offering any more protection at any point of the customers life. The customer’s family will receive a payout whether they die aged 30 or 130, and the customer pays for the insurance for a set number of years.
The biggest advantage of whole life insurance is that once you’ve reached a certain point in life, your need to leave money behind becomes less important, as your children leave home and become financially self sufficient, and you pay off your mortgage and rely on your salary far less.
It’s at this point that you consider taking back some of the hard earned money you’ve invested into your whole life insurance, by borrowing against the final payout.
Many people use the money they borrow against the payout to help their children with house deposits, or to pay off students loans, whilst others use it to help fund their retirement, especially if their pension hasn’t worked out to be as profitable as they’d once hoped.
Whole life insurance offers many options, and flexibility with your money is one of those options. Whilst you pay around eight times more for the cover in the first place, eventually you will see a return on the investment, and most people get back at least what they put into their policy, wither by borrowing it against their payout, or their family see the money as a result of a payout.