Whole of Life Insurance

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Whole Life Insurance is a policy that consists of many components. This is type of insurance will provide the policy holder with insurance cover for your whole life. As with most insurance policies, if the worst were to happen and the policy holder were to pass away, a pay out would be made to the policies beneficiaries. However, a whole life insurance policy has a saving element and this will increase in value. This is one of the key components to the insurance policy. As with your standard life insurance policy, you will still receive the death pay out should the policy holder pass away.

The amount you pay will go towards a cash value as well as the death pay out. With your standard life insurance policy, it is only the death pay out available.

Cover for the rest of your life

Cover for the rest of your life

How Does It Work?

A Whole Life Insurance policy never expires as long as you continue with the payments, the policy will stay in place regardless of your age and health at no higher cost to you. As stated, with Whole Life Insurance the cost of the policy will never increase as long as the payments are met. Compared to the standard life policy you get a better deal as the cost of those policies will always rise because as you get older the chances of dying increase.

One reason why this policy is a popular choice is that it also helps to cut your family tax bill, mainly inheritance tax. When you pass away inheritance tax is charged at a certain percentage on all assets worth more than a set amount, however, if you take out a whole life insurance policy it will ensure that your beneficiaries should receive a tax free lump sum.

Whole Life Insurance policies regularly pay out dividends. It is then possible that the money can then be used, if you wish, to purchase extra life insurance (paid-up additions), this will then increase the overall total death benefit that will be paid out and also increase the cash value of your life insurance policy. There is also an option to withdraw a small amount or all of the dividends in cash and this will be tax free.

The Features

  • Premiums will not increase
  • There is a saving element with this type of policy
  • You can amend your policy if your circumstances change
  • Tax free payout the your beneficiaries
  • Policy does not expire
  • Death benefit plus the amount paid in by you

What Are The Benefits?

  • All savings include interest
  • Do not have to worry about the renewal of the policy
  • The monthly premiums do not increase so you know exactly how much your paying each month
  • You and your finances are protected ensuring financial security for your whole family
  • Your policy can be adjusted to suit your needs should your circumstances change
  • The benefit pay out would be tax free
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