“Life assurance without a term; as long as you keep paying the premiums for the whole of your life the plan will pay out when you die”
This may seem a much better idea than Term Assurance plans as it’s guaranteed to pay out. However, you may find this type of plan has higher premiums. Also, consider the possibility of living until you’re 90…how much would the policy have cost if you’d been paying in for so long?

When do people use Whole of Life plans?

Whole of Life plans are often used by people who wish to protect their dependents from paying a large Inheritance Tax bill.

For example…

If it’s been calculated that a family’s potential Inheritance Tax bill is £250,000 should the estate pass to the next generation, then a Whole of Life plan with a sum assured of £250,000 should always cover the bill. As long as the insured person keeps paying the premiums until they die the policy will pay out £250,000 and could therefore be used to pay the tax man. To avoid the £250,000 being charged for Inheritance Tax, you could write the policy in Trust.

Types of Whole of Life Plans

There are as many as 7 different types of Whole of Life plans, it is important that you seek financial advice before making any decisions on which type of plan is appropriate for your circumstances.

In Summary…

For someone who wants a guarantee that their life is insured not matter how long they live or how long they pay the premiums for.