With a life assurance policy like Whole of Life the benefit pay-out is guaranteed as long as you keep up to date with premiums. Unlike term life insurance, the policy persists for life, not limited to an expiry date hence the name ‘whole of life’.
Compared to life insurance, a whole of life policy is fairly expensive policy. It pays out a tax-free lump sum whenever the policyholder dies.
The fact that a claim is certain as long as the policyholder keeps up to date with premiums means that premiums will be more expensive than for a term life insurance, where a claim is merely possible or at worst probable.
Whole of life assurance are substantive policies and can often be used as security for a loan either from the life office or from another lender. Whole of Life Assurance is also ideally used to cover inheritance tax bills.