Whole of Life insurance

Ensure your family’s financial security, guaranteed, with whole of life insurance

We can help ensure your loved ones are protected

What is Whole of Life Insurance?

A Whole of Life Insurance policy ensures that your loved ones will receive a lump sum payout upon your passing. This coverage remains intact throughout your lifetime, hence the term ‘whole life’ insurance.

  • Loved ones are guaranteed a payout
  • Provides cover for the rest of your life
  • Offers a greater sum assured than an over 50s plan
  • Medical information is required during application

It’s important to note that whole life insurance is a form of life assurance, guaranteeing a payout as long as premiums are consistently paid. Keep reading to delve deeper into the specifics of Whole of Life Insurance, including its cost and how to obtain this policy type.

How does whole life insurance work?

Whole of life insurance operates as follow:

  1. To apply, you need to specify your desired coverage amount, and your premium will be calculated based on your coverage level and personal circumstances.
  2. To maintain your coverage, you must consistently pay monthly premiums.
  3. The claim process is straightforward. In the event of your passing, your beneficiaries should contact your provider to initiate a claim on your policy.
  4. Following the assessment of your claim, a lump sum payout will be disbursed to your beneficiaries in a professional and compassionate manner.

Upon application, a specific cover amount is determined, leading to the calculation of your monthly life insurance premiums.

These premiums will be sustained throughout your lifetime. In the event of your passing, your beneficiaries can claim on your policy to receive a lump sum payout.

It’s important to note that failure to continue premium payments will result in the termination of your cover, leading to no payout issuance.

Enhanced Features of Whole Life Insurance

  • Guaranteed payout. Whole life insurance ensures a pay-out for your loved ones upon your passing, providing a certain benefit.
  • Fixed sum assured. The pay-out to your beneficiaries remains consistent throughout the policy’s duration, offering stability and clarity.
  • Fixed premiums. Enjoy the assurance of unchanging premium amounts for the entirety of your policy, ensuring predictability.
  • Premium waiver option. Certain policies offer the flexibility to maintain coverage if you’re unable to pay premiums temporarily, such as during illness or incapacity.
  • Joint coverage. Opt for joint life insurance to cover two individuals simultaneously, potentially reducing costs.

Whole-of-life insurance presents an excellent choice for individuals seeking to secure a lasting inheritance for their loved ones. As individuals advance in age, opting for a Whole-of-life insurance policy enables them to allocate a more substantial amount compared to an over 50s plan.

Typically, over 50s plans confine the sum assured within a range of £10,000 to £20,000, while Whole-of-life insurance opens doors to coverage extending up to £1,000,000, empowering you to bestow a more substantial inheritance and safeguard various financial obligations for your beneficiaries.

Moreover, individuals in good health stand to benefit from more competitive premiums, as insurers consider your medical details during application to determine your monthly premium accurately.

To explore whether Whole-of-life insurance aligns with your needs, reach out to our knowledgeable team members. Contact us today for expert guidance tailored to your unique circumstances.

What is the cost of whole of life insurance?

Whole of life insurance premiums are determined by essential factors such as the coverage amount (sum assured), age, health, smoking status, medical history, and pre-existing conditions, much like standard life insurance policies.

Given the guaranteed payout, whole of life insurance typically commands higher premiums compared to term-based coverage.

In some instances, these policies may have a specified upper age limit, usually around 85-90, after which premium payments cease while the coverage persists. Please note that this limit can vary among providers.

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Uses for whole of life insurance

Whole of life insurance provides a guaranteed pay-out to your beneficiaries after your passing.

It can be used to cover funeral costs, provide an inheritance for loved ones, support future living expenses, and more.

It offers financial protection and flexibility for your beneficiaries.

Types of Whole of Life Insurance

You have provided a clear distinction between two main types of whole of life insurance: investment and non-investment policies.

Investment whole of life policies link part of your premiums to investments, potentially affecting the final amount received by beneficiaries.

Non-investment policies involve fixed premiums and a guaranteed pay-out to beneficiaries upon the policyholder’s passing.

Can I take out joint whole of life insurance?

Whole of Life Insurance can be obtained jointly, covering two lives under one policy to save costs. With a single application and premium, there’s one pay-out after the first death.

However, this may leave the surviving partner seeking new coverage at an older age with higher premiums.

While joint policies offer savings, individual policies provide more extensive coverage. If a joint whole of life policy aligns with your budget, contact us for a detailed single versus joint life insurance comparison with a professional approach.

Can I add critical illness to a whole of life insurance policy?

Unfortunately, critical illness cover cannot be incorporated into a Whole of Life Insurance policy for comprehensive protection. However, you can opt for a standalone critical illness cover policy to ensure you have this specific coverage.

This would entail paying two separate premiums, potentially making it a more expensive choice. Critical illness cover offers an additional layer of security by providing a pay-out upon diagnosis of a serious illness listed in your policy.

These funds can be utilised for medical expenses, income replacement, or caregiver costs.

Because we play by the book we want to tell you that…

For insurance business we offer products from a choice of insurers.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Whole of life cover for over 50s

For individuals in their 50s and above, securing financial protection is vital. While some plans require lifelong premium payments, certain providers offer coverage without ongoing premiums after a certain age. Your choice between the two hinges on your unique circumstances.

An over-50s plan offers guaranteed acceptance for those facing health challenges within the age group.

Conversely, individuals in good health might prefer Whole of Life Insurance for a higher payout.

Whole of Life Insurance for over 50’s:

  • Provides rest of life cover.
  • Is ideal for helping to cover funeral costs.
  • Sum assured is capped at a lesser sum (this is often between £10,000 – £20,000).
  • Guarantees acceptance (ages 50-85).
  • Doesn’t require any medical information.

Consulting with a specialist like Mortgage Decisions can guide you towards the most suitable coverage. Reach out to us to compare various policies tailored to your needs.

You can also enhance your coverage by adding a Funeral Plan.

Benefits of Funeral Plan:

  • Efficiently plan and finance your funeral beforehand.
  • Flexible payment options: monthly instalments or lump sum.
  • Comprehensive coverage for essential funeral services.
  • Designed exclusively for funeral expenses.

Consider securing a Whole of Life Insurance policy and a Funeral Plan concurrently, if feasible within your budget.

With the Whole of Life Insurance you will leave an inheritance for your family’s discretion.
By adding a Funeral plan you have a guaranteed prepayment and arrangement of your funeral.

Frequently asked questions

What’s the difference between the whole of life insurance and term-based life insurance?

What are the pros and cons of whole of life insurance?

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