Whole of Life Insurance
What is whole of life insurance cover?
Whole of Life insurance (WOL or whole of life assurance) is a policy designed to pay out a lump sum to your loved ones when you pass away, no matter when that is.
As the name suggests, it lasts the whole of your life – there is no expiry date - and is guaranteed to pay out at some point, as long as you keep up with all your monthly premiums.
Many people get this type of life insurance policy if they want to have peace of mind that a substantial amount of money will be paid to their family once their gone, helping to pay of expenses such as the mortgage, inheritance tax, funeral costs and other payments that need to be made once you’re gone.
This way, your family can concentrate on mourning their loss, rather than getting tangled up in paying off debts at an already difficult time.
How does a whole of life policy work?
When you receive a whole of life insurance quote from one of our experienced advisors at Unite Life, you will be informed on all the details of the policy, how it all works, how much your premiums are and how much cover will be paid out when you pass away.
Once you’re happy with all the terms and conditions of the WOL policy and you want to purchase it, the cover will be put in place once you’ve paid your first premium.
As long as you continue to pay your monthly premiums in full and on time, you will always be covered and you’re loved ones are guaranteed to receive the lump sum when you are no longer here.
It is really important that you do not lie about anything to do with you and your lifestyle when applying for the insurance policy, as this could result in your family not receiving a payout. For example, if you said that you are not a smoker when you applied for the cover when really, you are, and you passed away due to a condition related to smoking, the insurance policy would not pay out and your family will be left struggling not only emotionally, but potentially financially.
How much are the premiums for whole of life cover?
As with any type of life insurance policy, the monthly premium is calculated based on your personal information.
When applying for cover, you will be asked questions to determine the amount of risk you are to the insurance company.
Generally, the higher the risk, the higher the premiums are – so if you are a smoker, you pose a higher risk to the insurer and in many cases, your premiums will almost double. On the contrary, the healthier and younger you are, the less risk you are, so premiums are likely to be a lot cheaper. Life Insurance can start from as little as £5 per month and the price can change depending on certain factors about you. At Unite Life, we recommend getting life cover as soon as possible, while you’re the youngest you’ll ever be and potentially the healthiest – this way, you’re premiums will be a lot cheaper than if you leave it until a lot later on in life.
Compared to other life insurance policies, WOL tends to be more expensive as the policy lasts as long as you do and the insurer will have to pay out at some point. At Unite Life, however, we aim to get you the cheapest possible deal, but most importantly, the best policy to suit you.
Life insurance premiums are based mainly on the following factors:
- Health status – whether you have any medical conditions, etc.
- Whether you smoke or not
- How much alcohol you drink
- If you partake in any extreme sports regularly
- Your occupation (whether it poses risks or not, etc.)
- The sum insured (the amount you want the payout to be)
These are the main aspects about you that will determine the cost of your premiums, but it is likely that you will be asked more questions to determine the level of risk accurately.
To get a whole of life insurance quote, don’t hesitate to contact us today at Unite Life. Our friendly advisors are on hand to help provide more information and they will never judge in any way when it comes to you and your lifestyle. All we want is to make sure that your loved ones will be fully covered when you pass away.
The benefits of whole of life insurance
Apart from the main advantage of whole of life assurance being that it protects your loved ones financially when you die, here are the other benefits that come with the policy:
- You and your family are covered for the rest of your life
- There’s no end date
- Your loved ones are guaranteed to receive a payout
- The payout is tax-free
- Peace of mind knowing your loved ones are protected
- It can help cover your family’s inheritance tax – if your estate (all your assets) totals more than £325,000 then your family will have to pay 40% tax, which can be a substantial bill.
- Low, affordable premiums the earlier you get it and the healthier you are
- Fixed premiums and payout
Of course, these benefits will only last if you continue paying your premiums on time and if you were 100% truthful during the application.
It is worth noting that the terms and conditions for each insurance provider may differ slightly, so be sure to double check them and make sure you’re happy with all the details of your policy. At Unite Life, we are always on hand to answer any questions you may have.
Get the best whole of life quote and policy
Life insurance is all about protecting your loved ones, no matter the policy, and there are different types of plans available to suit every person’s individual needs.
At Unite Life, we are a life insurance broker who works with the top providers across the UK. This means that we can help find you the best insurance policy in the UK and you can rest assured knowing that everyone you love is protected financially.
For any more information, contact us using the number below or complete our short contact form and one of our advisors will be in touch as soon as possible. You are under no obligation with us and our initial advice is free.