Expertly compared by David Beard

Products Updated October 28, 2021

 

Whole of Life Insurance

If you are looking for whole of life insurance then we can help. Our experts and providers can help find you a great deal from the market. Compare providers and apply online today with Lending Expert.

 

8 providers expertly compared:

ActiveQuote

Provider
ActiveQuote

Products
Life Insurance

Speciality
Compares The Market

Rated 4.8/ 5

All credit types

Active Quote will compare the marketplace across 10 life insurance providers to find you the best deal that meets the needs of youself and your family. Finding the best deal from providers such as Zurich, VitalityLife and Royal London only takes a few minutes and policies can be purchased online.

8 providers expertly compared:

Available via broker only

Friends Life

Provider
Friends Life

Products
Life Insurance

Speciality
Life Insurance

Rated 4.7/ 5

All credit types

Friends Life is now part of the Aviva Group. Get the cover you need to protect your family and loved ones when you're no longer around.

8 providers expertly compared:

Available via broker only

Royal London

Provider
Royal London

Products
Life Insurance

Speciality
Life Insurance

Rated 4.5/ 5

All credit types

With a policy in place with Royal London , you can leave money to your loved ones when you pass away, to help protect your family financially. Get a free quote or apply online.

8 providers expertly compared:

Available via broker only

Zurich

Provider
Zurich Life Insurance

Products
Life Insurance

Speciality
Life Insurance

Rated 4.2/ 5

All credit types

Zurich Life Insurance will pay out a cash sum if you die during the term of the policy, or if you are diagnosed with a terminal illness and are expected to live for less than 12 months. Plans can be tailored with optional extras to suit your individual requirements and to provide added peace of mind.

8 providers expertly compared:

Available via broker only

LV

Provider
Liverpool Victoria

Products
Life Insurance

Speciality
Life Insurance

Rated 4.5/ 5

All credit types

Life insurance from Liverpool Victoria will pay a lump sum should the worst happen, so you will have peace of mind that your family and loved ones will be financially protected when you’re no longer here. Even superheroes need protection.

8 providers expertly compared:

Available via broker only

Legal & General

Provider
Legal & General

Products
Life Insurance

Speciality
Life Insurance

Rated 4.6/ 5

All credit types

Life cover or life assurance helps you to financially protect the future of your loved ones. Life Insurance from Legal and General offers reassurance that your loved ones or family will still be looked after financially should the worst happen.

8 providers expertly compared:

Available via broker only

Ageon

Provider
Ageon Life Insurance

Products
Life Insurance

Speciality
Life Insurance

Rated 4.6/ 5

All credit types

Ageon is here to help you reach your goals at every stage of your life. Part of that involves putting plans in place to adequately protect and insure you against the unexpected things in life.

8 providers expertly compared:

Learn More Available via broker only

Vitality

Provider
Vitality

Products
Life Insurance

Speciality

Rated 4.6/ 5

All credit types

If the worst should happen, or you can’t work because of illness or injury, Vitality Life's 5-star Defaqto award-winning range of protection products will give you or your family payments to make things easier.

Read our customer and visitor reviews for this product:

Rating: 5 / 5 with 1 votes

No issues using this service.

by ANOM

I've used ActiveQuote before and find the whole process simple and they do as promised.

Apply for Whole of Life Insurance Cover With Lending Expert

If you’re looking for whole of life insurance cover then Lending Expert can help. Our team of professionals can advise you on the best cover for your personal circumstances. Compare quotes for free online today with Lending Expert. 

 

Key Points

  • Whole of life insurance guarantees a payout to your family when you die, as long as you have kept up with your premiums.
  • Factors such as age, health, and family history can impact the cost of your insurance premiums.
  • Payouts are tax free. However, if your estate is worth more than £325,000, your family may have to pay up to 40% inheritance tax.
  • Some whole of life insurance policies will let you cash out early.

 

What Is Whole of Life Insurance Cover?

Whole of life insurance – also known as whole of life assurance – is a type of insurance policy that guarantees a payout to your family when you die, no matter when this is. Usually, the provider will pay this money in a lump sum. 

 

How Does Whole of Life Cover Work?

With whole of life insurance cover, you’ll pay a monthly or annual premium. Your insurance providers may review this from time to time and revise the amount you have to pay each month or year.

When you die, your beneficiaries (the person or people you’ve nominated on the policy) will get a pay-out, usually in the form of a lump sum. You’ll remain covered so long as you pay the premium.

 

How Much Does Whole of Life Insurance Cost?

Whole of life insurance cover differs in cost between each provider, but generally, it’s more expensive than fixed term life insurance as insurers will have to pay out at some point. There’s some things that you can expect to influence the cost of your policy from every whole of life insurance provider:

  • Cover Amount – you’ll decide how much of a payout that you’d like your beneficiaries to receive.
  • Age – usually, the younger you are when you start your policy, the cheaper it’ll be.
  • Your Health – if you have any pre-existing medical conditions, this will impact your policy.
  • Medical History – your medical history and that of your family will impact your policy.

 

What Are the Alternatives to Whole of Life Insurance?

  • Level Term Life Insurance.
  • Decreasing Term Life Insurance.
  • Joint Life Insurance.

 

Is Whole of Life Insurance the Best Option for Me?

A whole of life insurance policy could be the best option for you if you want to leave your family a lump sum of money when you die. It could also be the best option for you if you want a payout that can help cover inheritance tax if your estate is valued at more than £325,000. 

If you’re only looking for temporary cover for financial security, a term life insurance may be a better option for you. For example, this could be when you have an outstanding mortgage to pay.

We would always recommend consulting an expert about which type of life insurance is best for you. Our team of professionals can offer expert and impartial advice to help find the best policy for you. You can start your application online today with Lending Expert.

 

Why Should I Use Lending Expert for My Whole of Life Insurance Cover?

Here at Lending Expert, we work with a number of different lenders and providers. You can use our free and easy to use eligibility checker for an indicative quote with no obligation.

Lending Expert was founded in 2013, and we have years of experience working in the life insurance and mortgage market. We’ve helped thousands of customers to date. Our values have always been to find the right product for the right individual at the most competitive rate – and we are pleased to offer our services for you today! Start your application today!

 

Is a Whole of Life Insurance Payout Tax-Free?

Yes, whole of life payouts are tax-free – your family won’t have to pay capital gains tax or income tax on this money. However, they may have to pay up to 40% inheritance tax if the value of your estate is more than £325,000.

You can protect your whole of life insurance payout from inheritance tax by keeping it separate from the rest of your estate. To do this, you’ll have to write this in the policy in trust.

 

Can I Cash In My Whole of Life Insurance Policy Early?

Some whole of life insurance policies do let you cash in early. Not all providers will do this though, so it’s important to check the terms of your policy before agreeing to it. If your policy does let cash in early, you’ll receive a smaller payout and could incur high charges and a penalty. This could then mean that you receive less than you’ve invested if you cash out early.

We’d always recommend talking to a professional about all of your options when it comes to life insurance. You can chat to our team of experts here at Lending Expert about the best option for you and start your application online. 

FAQ

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.

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.

  • 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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