Whole of life policies are designed to provide life assurance coverage for an individual's whole life, rather than a specified term.
Whole of life policies are designed to provide life assurance coverage for an individual's whole life, rather than a specified term. They contain a savings component, the idea of which is to build up a fund in the early years which will subsidise the life assurance cost in the later years. 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.
There are several types of Whole of Life contracts available in the market place and it is imperative that you complete the most appropriate type of plan depending on your circumstances and attitude to risk. Premiums are usually fixed for the first 10 years of the policy, and each 5 years thereafter, following which the policy is reviewed and the premiums or the sum assured may need to be amended depending on investment returns. Management fees also eat up a portion of the premiums.
Whole of life policies can be useful for some people to provide for an inheritance tax liability and sometimes it may be more beneficial to place these plans in a trust.
Some plans will allow you to add a combination of other benefits such as critical illness, total permanent disability, terminal illness as well as death benefits. For further information please contact us using the enquiry link.