Whole of Life Insurance
Get Quote Now
At first glance, Whole of Life insurance may appear to be more expensive, but unlike term assurance, which limits cash payouts to a set time scale, it will pay out benefits to surviving partners and your dependants, whenever you die. Another advantage is when the age specified by the policy is reached – often between 70 and 80 years old - you will no longer pay premiums, but will still have the reassurance of cover for the remainder of your life. The proviso is you must keep up payments until then, with no break in cover.
As an investment-based product, there is also a cash-in value, although you won’t see it for some time.
Who does it suit?
· People who want longer reassurance and something to show for their monthly premiums, no matter when they die.
· When a payout will definitely be needed, for example, to cover an inheritance tax liability of a large estate, or if you want to guarantee your children a cash inheritance.
The maximum age before you can no longer apply for a whole of life plan is 89.
Critical illness cover can also be arranged on a whole of life basis. In fact, in some cases where a whole of life critical illness policy is taken the insurer includes the same sum assured in the event of death absolutely free.
Plans can be arranged on a maximum cover basis i.e. maximum cover at minimum cost for the first 10 years and at which point the premium is reviewed. Or, by taking an assumption as to the anticipated growth rate of the investment content, the insurance company will calculate a premium that could ensure that the premium will never increase. This cannot be guaranteed since it is dependent upon the assumed growth rate, but although setting the premiums higher initially, should avoid the need for future increases. Premiums can be set by the policyholder anywhere in between these extremes as well.
It is also possible to have whole life cover where there is no investment content at all but these policies are not available across the full range of companies.
It is important to choose a life assurance vehicle that continues to meet your evolving family needs. These are long-term plans, so before acting, ask us about your options because there is a high degree of flexibility within these plans to help tailor them to your specific requirements.