Whole of Life Insurance
What is it?
Whole of Life Policies are
designed to provide cover throughout your life.
They can pay out a lump sum upon premature death or
diagnosis of a defined list of serious health
conditions such as heart attack, stroke or cancer
depending which type of cover is selected. For each
type of policy the premiums and cover can be
structured in a number of different ways.
Who are they for?
This type of assurance is
appropriate where a lump sum is required upon the
premature death/critical illness of the person
covered. The lump sum can then be used in a number
of ways.
- When invested can provide long term security
for beneficiaries or dependants
- Can be used to repay a debt.
- Can be used to pay an Inheritance Tax
liability.
How do they work?
The options with Whole of Life
policies are:
- Standard cover provides a sum assured
from a premium which should remain the same
throughout life.
- Maximum cover provides the highest
initial sum assured. The sum assured is
guaranteed until the first plan review (usually
in ten years). At that point either the sum
assured will reduce significantly or, if you
wish to maintain the same level of cover, the
premium will increase significantly to take into
account your current age. No further medical
evidence will be required unless you increase
the cover.
- Intermediate cover allows you to
structure your policy so that the contribution
level lies between the standard and maximum
cover. Once again, the sum assured will be
reviewed at the first plan review. No further
medical evidence will be required unless you
increase the cover.
- A proportion of each contribution you pay,
less any service fee, is invested in a fund or
funds of your choice. Each month a deduction is
made from the units to pay for life cover and,
if selected, critical illness cover. This fund
is then used by the insurer to suppress future
increases in premium. The higher the level of
cover selected, the less will be invested in
your fund.
Tax Situation
The proceeds from Whole of Life
policies are usually free from personal tax.
Whatever your financial advice requirements are,
you can be assured that Ashton Hoyle are well
positioned to provide an innovative answer and we
look forward to speaking to you on any financial
matter. Contact us now
to see how we can help. |
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