Whole of Life Insurance

Marco's Blog

Are you looking for great value for money? Are you after the best Whole of Life Insurance policy on the market? Are you aware of all the options for Whole of Life Insurance?

Would you prefer truly Independent Financial Advice, rather than being sold a product? Have you considered putting the policy in Trust? Which sort of Trust would be right for you?

We can help! Contact us for a free consultation to discuss your Whole of Life Insurance needs.

Whole of Life Insurance Policies

A Whole of Life Insurance policy is taken out for one's lifetime and pays out a lump sum on death whenever it occurs. The policies can be used to cover funeral expenses or to leave a legacy. Whole of Life Insurance policies are particularly helpful for Inheritance Tax (IHT) planning and may form an integral part of an IHT mitigation plan.

Typically, Whole of Life Insurance policies have an investment element but they are generally unsuitable as savings plans.  These policies are designed to provide Life Cover for Whole of Life. How the investment element performs will have an effect on the policy over time.

If a Whole of Life Insurance policy is surrendered you may get back some of the money you paid in if there is a fund value at the time. Policies can be set up on a Standard or Maximum basis (or in between).

Standard Cover for a Whole of Life Insurance Policy

This is the level of cover normally recommended for a Whole of Life Insurance policy. With Standard cover, if the quoted target investment return is achieved, the amount of Life Cover should be maintained at the same level without the need for future increases in your premium. However, this is not guaranteed and Whole of Life policies are normally set-up with regular reviews.

Maximum Cover for a Whole of Life Insurance Policy

This is the maximum amount of cover available under a Whole of Life Insurance plan and allows you to keep the costs down until the first plan review, usually 10 years. At this point and subsequent reviews (normally be carried out at 5 yearly intervals), you will probably need to increase your premiums by a substantial amount to maintain the same level of cover. This is a very cost effective way of achieving a great deal of Life Cover for the short-term.