Whole of life cover

What is Whole of life cover?

Whole of life cover is a type of life cover that provides cover for the whole of your life. This differs from (the cheaper) term assurance, which would cover you for a specific term

Whole of life cover will pay out a basic sum assured when you die. This is based on life cover and the investment of premiums. Thus, if the investment element of the plan performs well, the cover could increase. If the opposite happens, the premiums will need to increase or the cover will reduce.

Generally the cost of whole of life cover is more expensive than other life cover since if you pay all your premiums the policy will have to pay out one day. However, the premiums are normally reviewable every 5 years. This means that as you get older, the cost of the plan is likely to increase.

Whole of life cover is useful to fund for inheritance tax, or to pay funeral expenses.

To find out more about whole of life cover please contact us.