Whole of life assurance is designed to pay out whenever death occurs, rather than only within a set term. That makes it a lasting form of protection — and it often carries a surrender value too.
Key features
- Lifetime cover — protection for the whole of your life.
- Flexible premiums — depending on the type, premiums may cover just the insurance, or include an investment element that can build a cash value over time.
- Tailored options — protection-only, with-profits or unit-linked versions can be matched to your goals and legacy plans.
Types of policy
Protection-only (non-investment-linked)
A straightforward form of cover that lasts for the whole of your life with no investment element attached. The premiums pay purely for the guaranteed cover, so the plan builds no cash-in or surrender value and the sum assured is fixed from the outset. Only a small number of insurers currently offer this type, but it can suit people who want guaranteed lifetime cover, often for inheritance-tax or funeral planning, without any investment risk or future premium reviews.
With-profits
Combines insurance with an investment in the insurer's with-profits fund, providing a lump sum on death or a tax-efficient inheritance-planning option.
Unit-linked
Splits the premium between cover and investment to help meet future costs, with a choice of cover level — maximum, balanced or minimum.
Premium reviews
Unit-linked policies are typically reviewed around every 10 years to check the fund can sustain the chosen level of cover, allowing adjustments as your needs change.
Inheritance Tax and trusts
Written in trust, a whole of life policy can be a useful inheritance-tax planning tool, helping the proceeds pass smoothly to your beneficiaries. Where a policy includes an investment element, remember its value can fall as well as rise.
Important — please note
This article is general guidance, not personal advice. Cover, terms, limits and exclusions vary between policies and insurers, so always check the policy wording. Premiums depend on your individual circumstances.
For a recommendation based on your own situation, please get in touch.