Whole of Life

Choose Whole Life Insurance to Protect Your Future

Whole life insurance is a policy designed to protect the future you’re building. Your whole of life cover will bring you peace of mind because you’ll be providing for your family and loved ones, no matter what happens in the future.

What is Whole Life Insurance?

A Whole of Life Insurance Policy is one that guarantees you a payout from your insurance provider whenever you pass away. The policy has no expiration date as long as you pay your monthly premiums. So it will assure you that there will be enough money left aside for your loved ones.

Whole Life insurance differs from term life cover, such as Level Term Life Insurance or Mortgage Protection policies because it lasts until you die. Whole of Life policies can be more expensive because of the guaranteed payout, but they are also more reliable because the term will not end.

Should I Choose Whole of Life Insurance?

This is why you should choose Whole of Life Insurance

Whole of Life Insurance has not got an expiration date and is suited to those who want a guaranteed payout irrespective of age or how long they live. This is suitable for those who are particularly worried about aging out of their life insurance on a normal Level Term or Decreasing Term plan. Note however that Whole of Life cover is naturally more expensive than the other two term options due to the inevitability of a claim.

You can take a Whole of Life policy out at any age, and if you’re older but haven’t a mortgage or dependents you may wish to leave an inheritance or simply to cover funeral costs.

3 Reasons to Choose
Whole Life Insurance

1

Whole life insurance covers you from the day it begins until the very end. This balanced cover for your entire life provides a lump sum to your family and loved ones when you pass away.

2

Start when you’re young, and you can have low premiums that are fixed for life.

3

Write your whole life cover into trust to have a guaranteed payout and save your family money on the inheritance tax bill.

If you have a family who counts on your income, a mortgage repayment, or just the desire to leave a legacy for your children, then Whole of Life Insurance is the right product for you.

How Does Whole
Life Insurance
Work?

You set your whole of life insurance policy up with the help of an advisor. We will set your premiums at a fixed amount and your whole of life insurance cost should not change during the policy term. As long as you continue to make payments, the policy will cover you. When you die, the insurer will pay a lump sum to your family. You can choose to write your whole life cover into trust to help avoid a costly inheritance tax bill.

Fixed Premiums

Your premiums for whole life assurance (just another name for the same life insurance) should be set at the beginning of the policy and remain the same.

No Term Deadlines

As long as you pay your whole life assurance premiums, your policy will cover you. You don’t have to worry about your policy ending, leaving you with a big jump in premiums.

Free Cover

Many insurers allow you to stop making payments after a certain age. This means your policy could be free after you turn 85 or 90.

Whole Life Assurance
vs
Term Life Insurance

Term life insurance and whole life insurance policies are very similar. Both types of life insurance policies pay out when you die and you can write either of them into trust to avoid inheritance tax. Term life insurance policies run for a fixed term. You must renew them at the end of the term to enjoy continued coverage.

Whole life insurance policies continue until you die, as long as you continue to pay the premiums. They can be more expensive because the payout is guaranteed.

Why is Whole Life Cover a Good Idea?

Whole of life policies cover you as permanent life insurance. You determine how much cover amount you want, and then you pay your premiums to remain covered. Since the policy can be written in trust, you know that your whole of life insurance will benefit your family without burdening them with an inheritance tax bill. 

Whole life insurance rates can be higher than level term policies, so it’s important you ensure you can pay the premiums throughout the rest of your life.

When Should You Avoid Whole Life Insurance?

If you are only choosing one life insurance policy because of limited funds to pay premiums, then a term life policy may be the better option. Term life policies are less expensive, so you’ll receive more cover for lower premiums. Term life plans are also simpler, so you won’t have to worry about any extra management hassles along the way.

The benefits of Whole of Life cover

The most obvious benefit of Whole of Life cover is that the payout is guaranteed so long as you pay your premiums. There is a comfort in that certainty for the insured under this cover option.

Things to Consider with a Whole of Life policy

It is essential to revise the terms and conditions given to you by the insurance provider so that you don’t come across anything unexpected or receive a surprise as time progresses. The different terms and conditions can vary based on the insurer you choose. When you ring us we’ll go through these with you depending on your choice of insurer.

Policy claims are inevitable and so whole of life insurance is more expensive than the other term options of life insurance. So make sure that you are able to afford the premiums – you could be paying them for a very long time. With most insurers the policies cease requiring you to pay premiums at the age of 85 to 90, and so you are covered for free after this period should you live long enough.

Whole of Life Insurance FAQs

Can Whole Life Insurance Be Cashed Out?

Some people want to remove a fixed cash sum from their whole of life insurance policy before they die. While some insurers have a “surrender” option, the amount of payout may not be what you’re looking for because it will probably be much less than you have paid during your policy.

Can Whole Life Insurance Premiums Go Up?

Most whole of life insurance policies feature fixed payments as “standard cover.” However, some insurers offer a “maximum benefit” policy. In these policies, the insurer invests your payments into an investment fund on the stock market. The policy’s value is investment linked. If the investments perform poorly, then a premium increase is likely.

Are Whole Life Insurance Premiums Tax Deductible?

Personal whole of life cover policies are not tax deductible. Life insurance is a personal choice. Since it is not compulsory, the government does not make the premiums tax deductible.

Can Whole of Life Insurance Be a Business Expense?

Personal whole of life insurance policies are not valid business expenses. However, a “Relevant Life” policy can be a way for a business to give back to its key employees.

Is There a Whole of Life Insurance Joint Policy?

Yes, most insurers offer joint policies for whole of life insurance. These will pay out when the 1st person on the policy passes away. Joint whole of life insurance policies are very good for couples who want to look after each other and have dependents to whom they wish to leave a legacy.

Does Whole of Life Insurance Require a Medical Exam?

Many policies require medical exams, but this is to help you. A full medical history will ensure your payments are the correct amount. This helps provide everyone with a cost-effective option for insurance.

We're Here to Help

Are you ready to start your Whole Life Cover today? We’re here to answer any questions you’ve thought of and support you if you need advice. Click the button below to speak to one of our friendly experts who will help you get the right cover for your family.