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Whole of life insurance is very similar to another type of life insurance known as term insurance or term assurance, in that, if the life assured dies it pays out the benefit to their estate. That said, that is were the similarity ends, because whole life insurance runs for the whole of the life assureds life whereas term insurance, by the definition term, only runs for a specified period of time.

Owing to this fact term insurance, especially short term term insurance can be significantly cheaper. This is due mainly to the fact that it will only run for a specified period and there is a chance that the life assured will not die during this period. However due to the fact that whole of life insurance will run for the whole of the life of the client there is somewhat of a guarantee that it will definitely pay out some day and for that reason it is more expensive.

This is not the only reason why they can be more expensive, though. Due to the fact that some of the policies contain an element of investment which will add to the cost. You should realize at this point that whole of life insurance would not make for a very good savings plan, and if this is what you are looking for, then you would be better off exploring other avenues for securing an investment on your money.

The element of investment built into this type of plan is there to cover the unforeseen eventualities that may occur for the duration of the policy. Part of the process of creating a life insurance plan is for the life insurance company to assess the practicalities of the client’s state of being and the risk involved and cost the policy accordingly. Now no one knows for sure what the future holds and this is what makes the process of coverage all the more complicated so the insurance companies factor in investment as a way of covering the cost of the many changes that may occur for the duration of the policy, for the benefit of both themselves and the insured.

Now to get to the second part of the article, how to make it less expensive. Now with any whole of life insurance policy there are levels on which they are quoted. Three are based on premiums and three are based on benefits. Now they are essentially the same but the difference is whether the individual client wants a certain sum assured or whether his interest lies with the premium levels.

I will deal with a premium based plan, first is maximum benefit. Basically the quote is prepared with particular emphasis on producing the maximum sum assured for a given premium. This will result in the most life cover for the lowest premium. However it will only last for 10 years and at that 10 year point the plan will be reviewed and the premium will go up or the sum assured will go down. It should be noted that this type of plan is generally funded at the expense of the investment element of the plan so do not expect any significant fund value if any.

The second type of plan is standard cover, which aims to give a quote that can be sustained for the life of the policy. This is probably the best option when looking for whole of life insurance because of the way it is calculated. What happens is that the insurance company assesses the cost of the policy over the duration of your life and bases the premium on those figures.

Last of all is minimum sum assured, and due to the fact that it is based around investment within the plan, whilst paying little attention to the life insurance aspect, will undoubtedly be the most expensive option to pursue. Now of this is the sort of plan that interests you then my advice would be to seek the experience of an independent financial adviser, if for no other reason than that he will be able to guide you towards far better investment options.

It is important to know that sum assured plans also work on the basis of minimum premium for maximum payout. For example, standard premium gives standard cover, and maximum premium for minimum cover. Regardless of this, it is always most advisable to seek out the expertise of an independent financial advisor when considering level term or whole of life insurance cover as they will be best able to give you good advice as to what to choose. Remember, your family will be thankful of the time spent when they actually need to use your life insurance.

So in summary you can get cheap whole of life insurance quotes by quoting an either maximum cover or minimum premium basis, these quotes will give you the most cover for the least premium but you should always bear in mind that the true cost of providing that cover for the whole of your life will have to be paid some time in the future so you will not be able to keep those premium levels that low forever. That said it is a good way of getting some whole of life insurance cover at what may be an affordable cost.

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