whole of life assurance

This pays out an agreed sum when you die, whenever that is, as long as you are still paying the premiums. Such policies cost more than term cover, partly because they will pay out whenever you die, but also because of the various charges that come with them. Some whole-of-life policies also contain an investment element but these tend to cost a lot more than protection-only cover.

A fixed death benefit is paid to the beneficiary, this is either the 'sum assured' or the value of the investment pot, whichever is the greater.

The cost of whole-of-life depends mainly of the likelihood of the insurer having to pay out so factors such as your age, sex, state of health, whether you smoke and what job you do will all have an impact.

Premiums on some products may be fixed for the first 10 years of the policy, and for every 5 years thereafter. After the ten year period the policy is reviewed and the premiums or the sum assured may need to be amended dependent upon investment returns. Management fees also eat up a portion of the premiums.

Whole of life policies can be useful for some people to cater for a potential Inheritance Tax liability.

For more information on whole of life assurance, please contact us.