What is whole of life insurance?
Whole of life insurance has no fixed end date. It is designed to pay a lump sum whenever death occurs, as long as premiums continue to be paid.
It can be useful for legacy planning, funeral costs and inheritance tax planning. Premiums are usually higher than term insurance because the policy is expected to pay out eventually.
Key benefits
- Guaranteed lifetime protection
- Useful for estate planning
- Can help with inheritance tax planning
- Larger cover available subject to underwriting
Frequently asked questions
Usually yes, because the policy is designed to pay out whenever death occurs.
Often yes. Trusts can help the money reach beneficiaries faster and may help keep the pay-out outside the estate.
Over 50s plans are a simpler form of whole-of-life cover with guaranteed acceptance and usually lower sums assured.