Whole of Life – This policy is guaranteed to remain in force for the insured’s entire lifetime. If you want a guaranteed pay out whenever you die, this may be The Right Cover for you. You can use this plan for estate planning, family protection or funeral costs.
Whole of Life is a long-term insurance policy that stays in place for your whole lifetime and provides a sum of money to your family or estate when you die. Whole of Life Insurance guarantees a pay out when you die. While we may have no idea at what age we will die, we know it will happen and we know there will be a cost associated. Your family can use the plan pay-out for any number of things. Typically, your family can use it to meet the immediate costs associated with passing away. It can cover funeral costs and inheritance tax. Or just to provide a sum for your loved ones to help cope with loss of income.
A Whole of Life plan guarantees a payment, regardless of age. As long as the premiums have been maintained, it will pay out. Therefore, it will help reduce emotional stress.
This type of cover does not have an expiry date. It would also be wise to consider index linking your policy. This helps to protect the benefit from the negative effects of inflation. It allows the policy to increase on an annual basis to offset the effects of inflation. It usually increases in line with the retail price index, or in the case of some insurers, by a specific percentage.
If you cancel or stop paying your premiums, you won’t get any money back. The Whole of Life policies that we arrange do not have an investment value.