What is Whole of Life Insurance?
Whole of Life Insurance (WOL) also known as Whole of Life Assurance, is a policy that lasts for the policyholder’s lifetime and guarantees your family will receive a payout when you pass away, as long as your policy was still in force before your death.
It's cover for your peace of mind, knowing that your loved ones will have financial security no matter what. Therefore, WOL cover can be expensive when compared to Level Term or Decreasing Term Life Insurance because a claim is inevitable.
Whole of Life policies can be taken out by anyone, at any age. However, if you’re older with no mortgage and no dependents you could use a WOL policy to leave an inheritance or to cover the costs of your funeral.
Reasons to take out whole of life insurance
Peace of mind…
Knowing that your loved ones will get a guaranteed payout when you die.
Help your family from overpaying on inheritance tax…
Currently, if your estate is over £325,000, inheritance tax is 40% of its value. If you take out Whole of Life cover and write your policy into a trust, you won’t need to pay inheritance tax on it.
Guaranteed a pay-out from the insurer whenever you die…
Because the policy has no expiration date, as long as you pay your monthly premiums your family will receive the payout.
