Death is inevitable, that’s why making provisions for your loved ones when you die is so important. If you were to suddenly pass away, would your partner and/or children be able to cope with the loss of your earnings?
Whole of Life Insurance offers protection for this very scenario. Find out more about how these policies work.
This type of life insurance product is also known as ‘Life Assurance’ because the sums paid out will be ‘assured’ (provided you keep up with your premiums), upon your death. This type of policy is also colloquially known as ‘Permanent Life Insurance’.
With these policies, the sum can be released as one big payment to your will beneficiaries. You can, of course, choose the amount of money you would like to be covered for. And, you can also choose to pay your premiums on a monthly or annual basis. You can even find policies where you can pay your premiums in one lump-sum payment.
Whole of Life Insurance policies can also include an investment element, where your sum assured can be influenced by how well your invested assurance premiums perform. This can also be known as ‘Unit-Linked Whole of Life Insurance’. Unit-Linked Life Assurance policies will typically split your premiums to pay for the policy directly, as well as pay for the percentage that is to be invested. Unit-linked policies will be reviewed for their performance regularly. So, policyholders will have some idea of how their units are doing, in relation to the value of the policy and the sum assured it needs to provide. It is at this stage that you may be asked to either increase your monthly premium payments or lower the amount of money you would like assured at the end of the policy.
With-Profits Whole of Life Assurance is another variation of a Life Assurance policy which includes an investment element. Here, the money is pooled with other investor funds, which are then used to invest in shares, bonds, property etc. You may then receive an annual bonus from your funds, which can then be added to your assured lump sum.
Please note: You can also find Whole of Life Assurance policies where no investments are included.
Damien is 35 years old and is looking for a Whole of Life Insurance policy to cover £100,00 as his sum assured. He has chosen a policy which costs him around £1,500 a year in premium payments and he will be expected to pay his premiums up to his 90th birthday.
Damien is taking out the Whole of Life policy because he has a wife and three young children. His estate, including his home, totals £450,000. And so, as his assets are worth more than £325,000, his estate will be liable for inheritance tax charged at 40%. By placing his policy in trust, his family can use the sum-assured to pay the inheritance bill.
Speaking to a Whole of Life Insurance expert can help you find the best, most affordable plan for your needs. By filling out this short form, you can get a free, no-obligation quote for Whole of Life assurance. Get in touch now.
I needed life insurance and critical illness for myself and my wife. I got a number of quotes from some of the big brands and was very happy with the final price. Mike Davidson, Birmingham
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* Life insurance from 20p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis and available from Beagle Street. Figure accurate as of 19/03/2015.
* Life insurance & Critical Illness from 35p per day is an illustrative figure only and may not be available to you. The figure is based off of a 25 year old non smoking female taking out £150,000 of term assurance over 25 years on a level term basis along with £50,000 of critical illness cover and is available from Beagle Street. Figure accurate as of 19/08/2015.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATION EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
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