In plain English
Unlike term cover, which only pays out if you die within a set number of years, whole of life cover lasts for the rest of your life as long as you keep paying the premiums. That means it will pay out at some point, which is why it costs more. People often use it to pay for a funeral, leave an inheritance, or help their family with an inheritance tax bill.
You want to leave a guaranteed sum behind, whenever that happens, for a funeral, an inheritance or an inheritance tax bill.
Writing the policy in trust, guaranteed vs reviewable premiums, and how it fits with your will.
The details
With whole of life cover, the guaranteed sum assured is paid out on the death of the policy holder. This cover is more expensive than Term Assurance because a death claim is certain to occur.
Uses for Whole of Life Assurance
- Providing your loved ones with a lump sum on your death. If you die, your partner may need a cash sum to help pay the bills and replace any lost income. Whole of Life Assurance can provide this valuable peace of mind.
- Providing a lump sum to pay for your funeral and to pay off loans. The average cost of a funeral is around £7,300. We can provide the peace of mind that your loved ones won’t be left with this bill to pay after you have passed away.
- Providing a lump sum to pay an Inheritance Tax bill. This could mean that assets, which could include the family home, don’t have to be sold to raise the cash required to pay the Inheritance Tax. The Inheritance Tax rate is 40% and this is charged on all estate assets in excess of the nil rate band, which is currently £325,000 for a single person.
Questions people ask us
Why is it more expensive than term cover?
Can it help with inheritance tax?
What does writing a policy in trust mean?
Do I have to keep paying forever?
How it works
- Drop us a message
- Have a proper chat
- We keep looking after you