Life Assurance

albreda

Which is better - Term Assurance or Whole Life Assurance?

I'm 29 and my partner is 24. We've been in a relationship for nearly 4 years and are looking for life cover.

I understand that being a same sex couple some providers will happily increase their quotes by up to 250%, so I'm being careful to do my homework before signing up.

I have found Ivan Massow to be very helpful though they seem to offer only term assurance which is ok - For £15 per month we could have fixed term assurance over 30 years paying out £120,000. But at the end of the day, if would it not be better to get whole life assurance? I say that because of the investment element.

We'd apprciate any helpful advice.

Thanks,

Joe

dunstonh

Which is better - Term Assurance or Whole Life Assurance?

If you have a whole life need, then whole of life is better. If you have a need for a period of time only, then term assurance is better.

I understand that being a same sex couple some providers will happily increase their quotes by up to 250%, so I'm being careful to do my homework before signing up.

Quite a few will increase the premiums. Remember that quote portals will quote standard terms only. Some of the providers have quite cheap standard terms but increase the premium quite heavily on non-standard cases. One of the major providers that appears at the top end often does this for occupation, let alone anything else.

would it not be better to get whole life assurance? I say that because of the investment element.

Absolutely not. The investment element on £15pm will barely register a value for a very long time. The premium will usually not be guaranteed and if its one of the WOL plans that needs investment growth to maintain the premium, then you may find the premium gets increased in years to come.

albreda

Thanks very much for that. We're now just waiting on some papers and going for Term Assurance.

Joe