Whole of Life Policy

Whole-of-life assurance is the most flexible way to arrange life cover since there is no policy term. As long as the premiums are paid, the policy will continue until the death benefit is paid. The benefits covered on the policy can be increased or reduced at any time depending on your requirements. Obviously the premiums payable for a given amount of cover are higher for a whole-of-life policy because cover is likely to be provided for a longer period.

In most cases the premiums are reviewed (and possibly increased) every 10 years and every 5 years thereafter. After a minimum number of years the policy may acquire a surrender value which is normally used to either stop paying premiums temporarily or leave the policy in force, possibly at a reduced level for a limited period of time. Special whole-of-life policies can be used to provide for the payment of inheritance tax.