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.
Premiums are usually fixed for the first 10 years of the policy, and each 5 years thereafter, after which the policy is reviewed and the premiums or the sum assured may need to be amended depending upon 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.
A word of warning:
Whole of life policies are really just a flexible form of life insurance, but because they have a savings element, this is frequently over stated with promises of surpluses later on. In most cases we believe that it is more efficient and more cost effective to separate life insurance and savings.
If you would like to learn more about Whole of Life Assurance contact us here.
In order to determine the best solution for you, meet with one of our advisers, who will asses your current situation, or issue that you want addressed, and will construct an effective affordable solution specially tailored to fit your needs.