Whole of Life Insurance
What is Whole of Life Insurance?
Whole of life insurance lasts throughout your life, unlike term insurance which is for a specified period only. This means that your dependants would be guaranteed a payout.
Whole of life assurance can also be be used as part of your Inheritance Tax Planning where your estate is likely to exceed £325,000 (2018/19) limit). A whole of life policy can be used to cover part or all of any inheritance tax (IHT) liability you may have. We would always recommend that the policy be placed in trust and can provide the necessary advice for this.
Whole of life assurance can be a useful way of ensuring your dependents have enough money to pay for your funeral expenses. Click here for an Over 50s Funeral Plan quote from our choice of providers.
Whole of life insurance invariably costs more than term assurance. Whole of life policies can seem attractive because most (but not all) have an investment element and therefore a surrender value. If, however, you cash them in you cancel the policy and lose your life cover.
Where there is an investment element, your monthly premiums are first used to 'buy' units in an investment fund offered by the insurance company. This will calculate the cost of the whole of life cover for the next month and deduct the charge by 'cancelling' just enough units to pay for this life cover.
The investment growth of the fund will depend on how much is being deducted to pay for the whole of life cover. Premiums are usually reviewed after 10 years and then every 5 years or annually thereafter.
Whole of Life plans are also now available without an investment element and also with guaranteed premiums from some providers. We can also offer single premium whole of life and limited premium whole of life plans.
We can offer you the facility for an online quote for Whole of Life Insurance, but would strongly recommend that you also speak to one of our qualified advisers for some detailed advice because a whole of life policy is not necessarily the appropriate for everyone. Fill in our enquiry form if you would like one of our advisers to call you back with some expert, no obligation advice.