Whole of life cover pays out a lump sum in the event of death, no matter when it happens. There is no specified period. Whole of life policies are generally used to provide security for a family, and are especially suitable for Inheritance Tax Planning. Such policies are usually written on one of two bases:
The low premium is achieved because of the short period the premium is calculated over. After the initial period the policy cost is typically reviewed every five years to take into account the cost of life cover at this time.
This cover balances the level of life insurance with adequate monthly contributions that support the policy in later years. Standard cover maintains the original premium throughout the life of the policy. When choosing on of these policies its important to check what age the premiums are payable for, to maintain the level of selected cover.
The level of protection selected will normally be guaranteed for the first 5 years, at which point it will be reviewed to see how much protection can be provided in the future. If the review shows that the same level of protection can be carried on it will be guaranteed to the next review date. If the review reveals that the same level of protection can't continue you'll have two choices;
● Increase your payments
● Keep your payments the same and reduce your level of protection
To discuss your requirements call us on 0800 3893796 or 01483 419288. Alternatively request a call from us by completing our contact form.
INHERITANCE TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (FCA)