Whole of Life Insurance - what is it and what does it do?

Whole-of-life insurance, as opposed to term insurance, lasts throughout your life so your dependants are guaranteed a payout. Not surprisingly it can cost substantially more than term assurance.

Whole-of-life policies are issued with either guaranteed premiums and level of cover or on a reviewable premium/cover basis.

Care should be taken when considering whole of life policies: with reviewable policies you may find that, after 10 years, your insurance company decides that either your premiums are going to have to go up, or you are going to have to accept a cut in the level of cover.

Reviewable policies have an investment content and therefore the premium is based on an assumed growth rate - the higher the growth rate assumed, the lower the starting premium.  If the policy does not grow at the prescribed rate it will become necessary to increase the premium or reduce the level of life cover.

It is most important that you read through all of the literature provided with your quote to ensure that the policy will do what you want it to.

Whole of Life insurance - how it works

If you choose a Whole of Life Insurance policy your dependants will receive a lump sum when you die assuming you have paid your premiums.  The lump sum is tax free if paid to a spouse but may be liable to Inheritance Tax if paid to anyone else.  The money from your life insurance payout can be used for whatever purpose your dependants require.  Premiums can be paid monthly or annually by direct debit from your bank account.

Why buy through Moneyworld?

A very simple answer!  You get the same high quality product from the UK's leading Insurance Companies for less than any other supplier.  Please discover this for yourself, get as many quotes as you like then return to us and save yourself some money.

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