Whole of life cover.
Whole of life assurance is a type of life insurance designed to provide cover throughout the insured person’s lifetime, rather than for a fixed number of years.
WHOLE OF LIFE COVER
What is whole of life cover?
Provided the policy remains in force and its conditions are met, it is designed to pay a death benefit whenever the insured person dies.
This differs from term assurance, which generally ends after a specified period.
WHOLE OF LIFE COVER
How it could help
Whole of life cover may be considered by individuals who want to make financial provision that is not limited to a particular mortgage term. Depending on individual circumstances, the proceeds could potentially be used to:
- Provide a financial legacy for loved ones.
- Contribute towards funeral or other expenses.
- Help beneficiaries manage financial commitments.
- Provide funds towards a potential inheritance tax liability, where appropriate.
For example, someone who has built up assets over their lifetime may wish to explore whether whole of life assurance could form part of their wider estate planning arrangements.
The suitability of this approach will depend on their financial position, estate planning objectives and the structure of the policy. Independent legal and tax advice may also be appropriate.
WHOLE OF LIFE COVER
Important considerations
Whole of life policies can involve long-term premium commitments.
Some policies have guaranteed premiums, while others may be reviewable, meaning premiums or cover levels could change in accordance with the policy terms.
Cover may lapse if required premiums are not maintained, and policy charges, exclusions and other conditions may apply.
Whole of life cover is not necessarily an investment product and should not be assumed to have a cash-in value.
Important information about protection insurance
Protection policies are subject to eligibility, underwriting, policy terms, conditions and exclusions. The benefits available, premiums payable and circumstances in which a claim may be accepted vary between providers and products.
Failure to maintain required premiums may result in the loss of cover. Claims are not guaranteed and must meet the conditions of the relevant policy.
Our advisers can explain the relevant features, benefits, limitations and costs to help you consider suitable protection arrangements.
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