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Protect your Family with Life Insurance


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What is Whole of Life Insurance?

Whole of Life Insurance is a life insurance policy that covers the policy holder for the remainder of their life. There is no specified term and as long as premium payments are kept up to date, the policy will pay out a lump sum in the event of death; no matter when it happens.

Whole of Life Insurance is therefore more expensive because the insurance company will at some point have to pay out the sum assured.

Why should you buy Whole of Life Insurance?

Where you have been the main income provider for other people, there is likely to be a financial impact for them when you pass away. This could lead to hardships or at the very least a reduction in their standard of living. Whole of Life Insurance protects against this by providing a tax free cash lump sum payout when you die. This money would be paid to your estate and it is unlikely to provide a complete and ongoing financial recovery for your surviving family, however it could provide income replacement whilst they adjust to a new lifestyle.

Most people choose not to use Whole of Life Insurance policies to help with re-paying their mortgage and this is for two reasons. Firstly, Whole of Life Insurance is more expensive than term life insurance and secondly many people pay off their mortgage over a fixed term and when that term has expired the mortgage liability has gone so there is no need for continuing the cover beyond that.

However, Whole of Life Insurance does have other valuable uses.

There may be debts that need to be settled once you are no longer here; this may be for other loans or repayments on assets such as a car. Paying for a funeral is another viable use but probably the most common reason for people to take out a Whole of Life policy is to fund inheritance tax** liability. This is a complex area but basically, anybody who has an estate that is valued over the reviewed annual amount (currently £325,000), will be liable to pay inheritance tax at a rate of 40%. For example, if you have an estate (including the value of your home) which amounts to £500,000, you would be expected to pay inheritance tax amounting to £70,000 upon your death (£500,000 - £325,000 = £175,000 @40%). This means that your estate would only be worth £430,000. Whole of Life insurance can protect your estate but, as you would expect, there are many rules and regulations that surround this complex area.

The good news is that our broker partners may be able to provide you with all of the information that you need in order to make the right decisions.

What is the process?

If you would like to look into taking out a whole of life insurance policy, you can do so simply. All you need to do is complete the online enquiry form, which is accessible throughout the website. Insurio will then pass your information securely to a broker partner in your area, who will contact you to discuss the quote and provide advice should you wish to proceed.

At the time that you make your quote enquiry you must ensure that you are completely honest about all of your medical history, in order to allow the insurance company to accurately assess your case and apply all of the correct premiums. This process should only take minutes to complete unless you have or have had a medical condition. If this is applicable to you, our associates will assist you in completing the details in order to create as little inconvenience for you as possible.

As soon as you have received a decision from your insurance company you will be able to review and reconsider the offer - this will give you time to make sure that the cover is right for you. At no point during the process will you be expected to make a quick decision.