Whole of Life Insurance
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Also known as ‘life assurance’, this type of policy is a permanent life insurance which covers your whole life. As long as you pay the premiums, it is guaranteed to pay out to your beneficiaries when you die. This is different from term life insurance, which only pays out if you die during the set term the policy runs for.
Whole of life insurance is more expensive than other types because insurance providers know there will always be a payout at some point. It is often used to help family members cover the costs of funerals as well as to leave them with a lump sum to cover inheritance tax.
Should I Consider Whole of Life insurance?
When considering whole of life insurance, you must make sure that you can afford the premiums, not only during your working life but also when you retire. If you can’t keep up with your premium payments, the cover will be cancelled with no benefit payable.
The good news is that some whole of life policies only require you to pay premiums up to a certain age, typically to age 90, however this does vary between different insurers, individual policies and levels of cover.
How much Do I pay for Whole of Life insurance?
Like other types of life insurance, the price of your premiums can be affected by various factors:
- The cover amount
- The amount you would like your beneficiaries to receive will be a major factor in the amount you pay per month
- Your Age
- The younger you are when you start the policy the cheaper the monthly premiums will be. This is typical among most insurance policies
- Health conditions
- Any existing health conditions will also affect your monthly premiums
- Medical history
- As well as your own medical history many insures will also take into account your family medical history
- A range of other lifestyle factors
Benefits of Whole of Life Insurance
One of the main benefits of whole-of-life insurance is that it can help your family deal with any bills associated with inheritance tax. Currently, if an estate is valued at more than £325,000, the portion of your estate above this will be liable for tax at the current 40% inheritance tax rate.
As a result, many families are forced to take out loans just to cover this bill, which may be particularly stressful. A whole of life insurance policy could help avoid this issue. By placing your whole of life policy into trust you can keep it separate from the rest of your estate and there is no inheritance tax liable. This will be paid out directly by the insurer to your beneficiaries who can use the lump sum to cover costs.
Whole of life cover may also appeal if you are determined to leave some form of inheritance to your loved ones, or if you want to help with your funeral costs.
If you would like an adviser to review your existing cover and benefits or would like to discuss Whole of life Insurance in more detail, please get in contact.
Whole of Life Insurance: Lifelong Assurance for Your Loved Ones’ Financial Future
Selecting the appropriate life insurance policy is a crucial step in safeguarding your family’s financial future. Whole of Life Insurance, offering lifelong coverage and an assured payout, stands out for its comprehensive protection, financial planning advantages, and the peace of mind it provides.
Whole of Life Insurance, as the name suggests, guarantees coverage for your entire lifetime, unlike term insurance that only covers a specified period. This lifelong assurance ensures that your beneficiaries will receive a payout no matter when you pass away, securing their financial stability.
One of the key advantages of Whole of Life Insurance is its potential as an estate planning tool. It guarantees a sum that can be used to cover inheritance tax, thus preserving the value of your estate for your heirs and easing the financial burden at a challenging time.
Furthermore, many Whole of Life Insurance policies come with an investment component. A part of your premium is invested, allowing for the potential growth of a cash value over time. This feature can prove beneficial for long-term financial planning, offering an additional source of funds that can be borrowed against if needed.
Whole of Life Insurance also offers the benefit of fixed premiums. This means your premium amount will not increase over time, offering you a predictable and manageable payment plan that won’t change as you age or if your health status changes.
In terms of customer service, providers of Whole of Life Insurance typically offer personalised support throughout the life of the policy. This comprehensive service includes assisting in choosing a suitable policy, managing the policy over time, and providing support during the claims process.
In this digital age, most providers also offer online platforms that simplify policy management. With a user-friendly interface, these platforms allow you to update your policy details, make payments, and file claims, making the insurance process more straightforward and convenient.
Whole of Life Insurance is not just about providing financial security. It also offers peace of mind, knowing that your loved ones will be financially taken care of no matter what the future holds. This coverage, coupled with its investment potential and estate planning advantages, makes it a valuable tool in any financial plan.
Secure your family’s future with Whole of Life Insurance, where the assurance of comprehensive, lifelong coverage meets the convenience of digital accessibility. With its many benefits, Whole of Life Insurance is more than just a policy; it’s a comprehensive solution for lifetime peace of mind.
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Find out more about Life Insurance by reading our Life Insurance Explained guide
Life Insurance
Life insurance provides a lump sum in the event of death during the term of the policy. Life insurance will be paid to your loved ones and can be used to ensure your family can maintain their lifestyle should anything happen to you.
Critical Illness Cover
Financial worries are the last thing you want to be dealing with should you become critically ill. A critical illness policy will pay a lump sum, upon diagnosis of a qualifying illness. These conditions will vary depending on the chosen insurer.
Income Protection
Income protection is a form of insurance cover that can provide a regular income if you are unable to work due to long-term illness or injury. This type of protection will typically provide policyholders with between 50-70% of their incomes, in a regular monthly payment.
Mortgage Protection
A mortgage protection policy is a life insurance policy that protects your loved ones in the event of your death during the term of your mortgage. If you become seriously ill or die, mortgage protection is designed to clear your mortgage balance in full to protect your family.
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