Whole of Life Insurance
Whole of Life insurance may be more expensive, but unlike term assurance, which limits cash payouts to a set time scale, it will pay out benefits to surviving partners and your dependants, whenever you die. Another advantage is when the age specified by the policy is reached – often between 70 and 80 years old - you will no longer pay premiums, but will still have the reassurance of cover for the remainder of your life. The proviso is you must keep up payments until then, with no break in cover.
As an investment-based product, there is also a cash-in value, although you won’t see it for some time, and in some cases a Whole of Life insurance policy can be used to mitigate a potential inferitance tax liability.
Who does it suit?
· People who want longer reassurance and something to show for their monthly premiums, no matter when they die.
· When a payout will definitely be needed, for example, to cover an inheritance tax liability of a large estate, or if you want to guarantee your children a cash inheritance.
It is important to choose a life assurance vehicle that continues to meet your evolving family needs. These are long-term plans, so before acting, ask us about your options and what the financial implications will be.
How much cover is enough?