What is life insurance?

When the term life insurance offers financial protection against the life of the policy holder only for the duration of the term insurance, whole life guarantees the payment of a sum insured to the death of the policyholder, whenever it may occur.
The simple definition, therefore, it should be possible to see that life premiums will cost more than premiums of the term, since the event is certainly going to happen and the insurer must eventually pay. Risk by the insurer, here, is not "If" but "when". However, certain policies have a certain age beyond which cover continuous but without having to pay additional dues.
More important than this distinction, however, is that, contrary to a policy of term life insurance, whole life does not guarantee all of the sum insured. Benefits payable on the death of the insured are instead determined by the performance of the investment of the Fund in which contributions were paid. In practice, the monthly premiums will be served by the insurer to purchase units in an investment fund. Some units are then collected to provide a level of coverage of life guaranteed minimum. Just what proportion of the premium is used for investment and what proportion of cover of life to a certain extent will depend on the options agreed between the insured and the insurer.
For example, the insured may choose to receive the minimum amount of guaranteed life cover and see more monthly premiums to the acquisition of investment units. At the other end of the scale, the policy holder may choose the maximum proportion of life cover and, therefore, there would be a much smaller proportion available for investment.
In General, every five or ten years, the policy will be built in review dates, when the insurer will compare the actual value of the investment funds of its future performance likely and benefits expected by the end of the policy. These reviews may lead the insurer informing that the premiums will have to be increased if the level of coverage must be maintained, or the level of death of the policyholder to be reduced if it is preferable that the premiums are to remain at the same speed.
Another variant in the whole of life policy is a plan with benefits which guarantees a certain benefit payable on the death of the owner of the police, but also increases this benefit from year to year, with the addition of the annual premiums or "reversionary". These will improve and then permanently eventually paid amount. Death of the holder of the police, most political benefits will also integrate a terminal bonus said, in addition to the annual premiums accumulated, thus further enhancing total benefits.
As with other forms of life insurance, whole life insurance also generally provides a number of additional options that are available on payment of an additional premium. These could include payment of a lump sum benefit for the owner of the police for his becoming invalid or a diagnosis of a serious or critical illness.