Guaranteed whole life assurance commonly known as whole of life insurance is a form of life insurance which guarantees to pay out a fixed sum upon death (usually tax-free) and the policy remains in place for the entire life of the policyholder. Guaranteed whole of life assurance has no investment element which means that both the premiums paid and the sum insured can remain fixed throughout the life of the plan.
term assurance policies are.
Do I need whole life assurance?
If you want to guarantee that a sum is left behind for your family after you pass away then whole of life cover is a product to consider. Term assurance would be more appropriate than whole of life assurance if you were looking to cover a potential liability that is fixed in time, such as a mortgage or until your children leave home. Because whole of life assurance is certain to pay out it will be more expensive than term insurance.
Factors to consider when buying whole of life cover?
- Do you want your policy to last the whole of your life with a guaranteed payout to your family upon death?
- What tax-free sum would the whole of life assurance require to pay out to financially protect your family?
- Do you require the whole of life cover payment to be index-linked so it rises with inflation?
Pros and cons of a whole life assurance?
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Guarantees to pay out as cover not constrained by time period. |
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If structure correctly the pay out should be tax free. |
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Whole of life cover is more expensive than term insurance. |
If you are looking to buy whole of life assurance or would like some guidance then get in touch, we will be happy to help.
For general insurance and regulatory information see the insurance section of the Directgov site.
