As the name states, you get life-long protection. You pay premiums throughout your life but can choose to pay for a selected period with some plans, called limited pay life. The whole life policy will pay the sum insured and any bonuses you have built up (if it is a “whole life with profits” or “whole life participating”) when you die or become totally and permanently disabled. Not all plans provide the disability benefit. For whole life non-participating or without profits policies, the sum insured normally does not increase. When choosing whole life policies, great care must be taken to consider the guaranteed death benefits, projected death benefits and the guaranteed and projected cash surrender value vis-à-vis the premiums.

From the financial planning viewpoint, a whole life is a definite “sure to claim” policy since death is certain, and it is recommended for this reason and for estate planning [getting a sum of money to pay for final expenses and any estate duty or to make a gift (bequest) to loved ones or charity].