Protect your wealth and provide for your family when you die
Whole-of-life insurance represents a comprehensive approach to life cover, ensuring that a specified sum assured is paid upon your death, regardless of when it occurs. This type of policy particularly appeals to individuals who aim to leave a legacy for their families, make provisions for Inheritance Tax or secure their business continuity after they are gone.
Given that a payout is guaranteed, whole-of-life policies are typically more expensive than term insurance, which only covers specific periods.
Inheritance Tax solutions with whole-of-life insurance
One of the key benefits of whole-of-life insurance is its utility in addressing potential Inheritance Tax liabilities. Establishing a policy designed to cover anticipated taxes ensures that a significant portion of your estate is passed on to your beneficiaries.
To maximise this benefit, it’s essential to have your policy written within an appropriate Trust, a complex aspect of estate planning that often requires professional financial guidance.
By placing policy proceeds outside your estate and maintaining premium payments throughout your life, a whole-of-life policy can help minimise your estate’s overall value, reducing future Inheritance Tax obligations.
Policy options for your unique needs
Whole-of-life insurance offers various policy types, each with unique features and benefits:
Set policy sum assured proceeds: These guarantee a predetermined amount upon death, providing certainty in your beneficiaries’ payout.
Investment-linked policies: Some providers offer policies without an investment component but with guaranteed or investment-linked premiums or with-profit policies providing bonuses. Some policies require premiums until death, while others become paid up at a specified age, waiving future premiums.
Navigating reviews and cover options
Assuming the plan isn’t guaranteed, after the initial ten years, a review of your whole-of-life policy will determine the future of your cover. If the review concludes that the current protection level can be maintained, it will be guaranteed until the next review. However, if maintaining the same protection level is not feasible, you will have options: either increase your premium payments or keep the same payments and accept a reduced level of protection.
Whole-of-life policies offer different types of coverage:
Maximum cover: Provides a high initial cover level at a lower premium.
Standard cover: Balances life insurance with ample investment to support the policy in later years.
Ultimately, your whole-of-life insurance policy should align with your unique financial goals and circumstances. It should provide peace of mind and protection throughout your life, ensuring you can support your family and protect your wealth, regardless of the future.
In conclusion, whole-of-life insurance is more than a policy; it is a long-term strategy for financial security and legacy planning. You can ensure lifelong protection and peace of mind by carefully selecting a policy that aligns with your financial goals and life circumstances. Whether securing your family’s future, mitigating Inheritance Tax or protecting your business interests, whole-of-life insurance can offer a solution tailored to your enduring needs.
