Protection for life
Whilst Term Assurance is the most popular form of life insurance, there are many cases where Whole of Life cover can be considered more appropriate.
Whole of Life insurance will pay a lump sum no matter when you die, whereas Term Assurance only covers you for the period of your policy. The main advantages of a Whole of Life policy include: guaranteed death entitlement, as long as payments are maintained; whole of life protection, no matter what age you live to; cash value which can be borrowed against; and level rates which will never be increased.
Who needs Whole of Life cover?
If you fall in to the category of potentially incurring a future inheritance tax bill, Whole of Life cover could be for you.
UK Inheritance Tax wipes out 40% of any value over the threshold of £325k upon death. However, you can ensure your beneficiaries receive the money you set out to leave, simply by setting up an appropriately worded trust that keeps your Whole of Life policy outside of your estate.