Term vs Whole of Life Insurance
Term and whole of life insurance cover offer two types of life protection – term insurance covers you for a certain amount of time while whole of life insurance lasts until you die.
Term life insurance
With term life insurance you are taking out a policy for a specific period of time, for example, 10, 20, or 30 years, and this is known as the ‘term’. Benefits are paid only if you die during the term of the policy.
Whole of life insurance
Whole of life insurance cover does not have a fixed term and so covers you for life and if you pass away a lump sum payment will be paid to your family. For this reason it is often used as a tax efficient way of estate planning.
When deciding between term and whole of life insurance cover, having all the information is key. Guidance from a financial advisor should help. You can find a financial advisor near you with the Zurich Financial Advisor Finder or our Financial Planning Team can provide you with more information about Zurich's insurance options.