Gateway Financial Advisers

Whole of life insurance provides insurance protection for the rest of your life.

Whole of life insurance is available in two basic forms, Maximum Cover and Balanced Cover. Although both forms offer protection over the lifetime of the insured, their structures are different.

Generally speaking, Maximum Cover will permit a lower cost per thousand ponuds of insurance, but its projections can be more volatile.

Maximum Cover passes on more pricing risk than whole life meaning that the owner assumes some of the risk of the cost of insurance and also assumes the risk of fluctuating interest rates.

Balanced Cover can offer a guaranteed cost of insurance. Each form has advantages over the other and the selection should be based on the long-term objectives of the insured.

Objective
To help prevent financial difficulty caused by the death of the insured.

Suitability
Suited for individuals with long-term life insurance needs who have the cash flow to pay the annual premiums.

Features
These policies can have a surrender value.
The proceeds can be written into trust to reduce inheritance tax liabilities.
Premiums under Balanced Cover can be guaranteed.