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Whole life insurance pays on death whenever that may be and can be used for inheritance tax planning

There are a number of options when it comes to protecting your family with life insurance.  That is why it is always recommended to seek professional financial advice from the experts to help ensure you protect what matters and when it matters most!

What is whole of life insurance?

As the name implies, whole of life insurance is exactly that.  It pays out when you die, whenever in the future that may be.  These policies can be written on a single or joint life basis and can be set to pay out on either the first or second person to die.

Sometimes but not always, it can be a more expensive option than term assurance on the basis that the life insurance company knows that it will definitely have to pay out at some future point.  The insurance company works out the premiums based on a number of factors including reference to their mortality tables that show the average lifespan based on an individual person's then-current age.  Often these plans also offer some form of investment content and can, therefore, accrue a surrender or cashing in value – unlike term insurance.

Who is it for?

A whole of life insurance is for those who want to leave a lump sum in the event of their death, whenever that may occur.  These policies can be arranged to ensure outstanding debts are paid after your death and or for those who want to leave a lump sum to loved ones who may also face a potential inheritance tax liability.

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THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE INHERITANCE TAX PLANNING ADVICE & ALTHOUGH A WHOLE OF LIFE PLAN CAN ACQUIRE A CASH VALUE ITS PRIMARY PURPOSE IS TO PROVIDE FINANCIAL PROTECTION AND SHOULD NOT BE SEEN AS AN INVESTMENT VEHICLE.

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