Whole Life Policies aren’t all bad news says Michael Heath, Director of Milestone Financial Planning.
Recently, the Guardian reported that a woman who invested more than £35,000 between 1987 – 2016 in a Whole Life Policy, had only received a return of £1,500.
However, if you have a Whole Life Policy, Michael advises: “Don’t panic, the reputation of Whole Life Policies is not wholly deserved.”
He explains: “The financial industry has developed over the last 30 years into an industry that can be managed. At the time this was sold as an investment, the market was dominated by commission-based salesmen. Luckily, since then the regulations from the Financial Service Act of 1988 have stopped these unfair policies.
“Whole life policies are policies that cover a period of a lifetime. They are life insurance and pay out a lump sum to the policyholders’ family, or whoever has been stated on the policy. They are a great option where the holder wants more for the dependants and the policy can be tied it into investments, or agree terms of a specific premium.”
According to the Association of British Insurers, the UK’s insurance industry is the third largest in the world, with research done by the Bank of England suggesting that there are 387 life insurance companies in the UK.
Michael added: “It’s safe to say with that many life insurance companies, finding an insurance policy to suit you is difficult and time consuming. At Milestone Financial Planning we can look over what people tend to forget. Taking care not to assume the whole of life premium remains the same is important as many investors in the policy tend to see a large rise in premium after the first year. It’s vital to avoid policies with an initial low cost as insurance companies do this to lure people in.”
To get the right Whole of Life Insurance policy for your specific needs, it’s important to get independent advice which is why using an independent advisor, like Milestone Financial Planning is a good decision.”
To make sure you’ve got the best policy for you and your family, Milestone Financial Planning independently help you plan and find what’s right for you. Call us on 01246 903053 to get to know our many other financial planning services that are available.
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