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Whole of Life Assurance
Life Insurance

This type of cover is designed to protect the policyholder for their entire life. Unlike term assurance policies, these contain a savings investment, which is built up in the early years to subsidise the life insurance cost in later years. A fixed death benefit is paid to the beneficiary, which is either the sum assured or the value of the investment, whichever is the greater.

Premiums for a whole of life policy are usually a fixed amount for the first 10 years, after which they are reviewed every 5 years. At each review the sum assured and premiums may be amended depending on the return of the investment and it’s management fees.

Whole of Life policies can be useful in certain cases, for example to provide for inheritance tax liability.

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