If you are looking for effective life cover that won't cost an arm and a leg, then look no further than low-cost whole-of-life assurance.
It's comparitively cheap when set against other whole-of-life products because it combines with-profits assurance and term assurance.
The with-profits element builds up over the term and is 'topped up' through the bonuses added to it, as with all such policies.
However, because the initial sum assured has been set at a lower level than the required cover, it is cheaper.
But the shortfall in cover (because of the lower sum assured) is made up by the term assurance part of the policy.
Term assurance is usually the most basic - and the cheapest - form of life assurance. It provides protection, nothing more, and pays out only on death.
As the with-profits part of the policy builds up, through the addition of the bonuses, the shortfall in the cover reduces. Thus the term assurance element required to cover the shortfall becomes less and less, until the need for it ceases altogether.
