Whole of Life Insurance Guarantees

Whole of Life Insurance Guaranteed is a life insurance plan that covers an individual for all life and is not fixed for a time period. Thus, in this type of policy the dependents or the beneficiary of the claim receives a lump sum amount whenever the insured dies provided all the premiums have been paid on time. The whole life insurance allows you to pay your inheritance tax, everyday living expenses or any educational expenses of your children even after you are dead, so this in a way gives you peace of mind through its life-long coverage.

The advantages of having whole life insurance coverage include:

  • A guaranteed payment of a lump sum amount when the insured dies
  • Most of the companies strive to give you affordable premium and that too with many flexible ways to pay them.
  • The company gives you the liberty to choose the coverage amount within the limits of the policy.
  • There is a facility of choosing an option to increase the yearly premium by certain percentage, most commonly 5% so that your policy is protected against the adverse effects of inflation. This option should be chosen at the time you take the plan.
  • Most of the whole life insurance plans do not have cash-in value but you may get some cash in value in you pay the entire premium amount at one go. However, this cash in value will always be less than the premium that you pay.

The amount for which you should take the cover depends on many factors like:

  • How many dependents you may need to support in case you die at any point of time
  • If you have any mortgage or after death there will be any inheritance tax that will be required to pay.

Any resident of UK who is who is aged between 16 to 89 years can apply for whole life insurance coverage. As per the law a U.K resident is the one who permanently resides in UK and Northern Ireland and excludes Channel Islands and Isle of Man. The insured can put their policy under trust and can name anyone to be the beneficiary after his death. In UK under the new tax rule, it can also save the beneficiary from paying any inheritance tax. Whole life insurance definitely gives a peace of mind in case you have dependents.