Financial products that can damage your health, not just your wealth
Article posted on Thursday, July, 7th, 2011 at 7:20 am
There are about 4.5 million whole of life insurance policyholders in the UK who every month pay into their insurance policy which guarantees to pay a lump sum on death.
These policies are often sold by the banks to the elderly to cover the cost of their funeral… these policies can be good value but only if you die shortly after taking out the plan. Banks also use these plans for those customers who are worried about inheritance tax.
However unlike term assurance which is insurance in it simplest form, whole of life insurance is a mix of insurance and investment which is designed to keep the premium low. The reality is that low premiums are more the exception then the norm.
Here are findfinancialadvice, over the years, we have seen many clients who have taken out these type of policy with banks on the basis that the premiums will stay low for ever and will be the most cost effective way of insuring against death. Whole of life insurance plans are reviewed regularly and tend to rise after 10 years and then every year thereafter. Findfinancialadvice has met many pensioners who are struggling to pay insurance premiums which have more then doubled over the years.
If you have a whole of life insurance policy and would like to see what can be done to ensure that your premiums don’t increase then register here on findfinancialadvice and speak to an independent adviser today who will go through all the other options available to you.
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