Whole-of-life insurance is a type of policy that covers you for life.

No matter when you die, your loved ones can receive a lump sum.

Here are some frequently asked questions that we are often asked by our clients

  • Whole of life insurance is a life insurance policy that is guaranteed to pay out a lump sum whenever you die. The policy has no end date. It ends when you die and a claim is made. It is important to note that premiums must be paid and kept up to date. If you cancel or stop paying your premiums, you won’t get any money back. There is no investment value in the Whole of Life Insurance policies which we arrange.

  • Whole of life insurance is a life insurance policy that is medically underwritten. Read our guide about how whole of life insurance works.

    1. One of our friendly advisers will need to ask you questions about your:

    • Age
    • Weight
    • Lifestyle – smoker or non-smoker?
    • Occupation if you are still working
    • Medical history
    • Amount of cover required – we can help you decide on this
    • Family medical history

    2. If you have any pre-existing medical conditions from the answers you provide, we will search the market on your behalf. Different insurers have varying attitudes to risk.
    Some may feel that a medical condition is not important when it comes to what premium is offered. Others might charge extra as they view it as high risk. In our award-winning Future Proof process, we contact insurers before submitting an application. We run a client’s medical details past an insurer’s underwriters anonymously. To get a clear understanding of what premium will be offered. Only then, do we suggest applying to the most sympathetic. This avoids wasting your time and any unnecessary nasty surprises.

    3. You may be required to attend a private medical assessment ( paid for by the insurance provider) or, your GP may be contacted to provide a GP report. Future Proof will liaise with your GP to speed up this process. These will help an insurer better understand your medical condition.

    4. Once your policy has started we help you to place your policy in Trust.  (URL https://www.futureproofinsurance.co.uk/life-insurance-trust) at no additional cost. Trusts are not regulated by the Financial Conduct Authority.

    5. You keep up your monthly premiums and whenever you pass away the lump sum is paid to your loved ones.

  • Whole of life insurance covers the life of an individual. Whenever you die, the policy is guaranteed to pay out. ( as long as premiums are paid and up to date)

    • A recap of personal information – which you must check is present and correct
    • Your name
    • Type of cover the quote is for
    • Sum insured ( or monthly benefit)
    • Term ( length of the policy)
    • Full premium
    • Any premium discounts – for example a multipolicy discount with one insurer
    • Monthly premium payable

Are there different types of whole-of-life cover?

There are two different types of whole of life cover. Guaranteed rates and reviewable rates. For the majority of cases, we recommend guaranteed rates. Although reviewable rates do have their place. We recommend that you speak with your Future Proof adviser to discuss which policy is best for you.

Guaranteed rates

This means that the monthly premium that you pay will remain the same until you die and a claim is made.

Reviewable rates

The monthly premium that you pay will change every five or ten years. This will be determined by how many claims the insurer has had to pay out. If they have had to pay out higher than expected claims, then your premium may rise, as the insurer passes on the cost to their policyholders.

Embraced senior couple enjoying in autumn day on a field.

Who is whole of life insurance for?

Whole of life insurance is for anyone that wants a guaranteed lump sum paid to their loved ones whenever they die. For reasons such as paying for their funeral with a lump sum, or helping their families pay inheritance tax.

It tends to be taken out by people who are close to or of the age of retirement with children have grown up and left home with the mortgage paid off, or nearly paid off.

 

Is whole-of-life insurance worth it?

Whole of life insurance is worth it if you are looking for a life insurance policy that will guarantee to pay out whenever you die. You won’t have to worry about a policy coming to an end and finding a replacement.

Speak with one of our friendly advisers who will arrange a suitable plan for you and continue to pay your premiums for ongoing peace of mind. 

Happy senior couple talking while cycling in nature.

When thinking about whole of life cover it is worth considering:

  • There are many benefits of a whole-of-life policy. These include:

    1. Guaranteed payout of a lump sum, whenever you die.

    This is different to a term life plan which will only run for a limited term eg to age 65 years. If you were to die after the term ends, your policy will have ended and you won’t have any cover.

    1. The benefit amount can be used to:
    • Cover your funeral costs
    • Leave a lump sum gift
    • Be used to help cover a potential IHT Liability*

    *Upon death, Inheritance Tax Liability (IHT) is paid on any part of your estate that exceeds the ‘nil-rate band’. The ‘nil rate band’ threshold currently stands at £325,000 for an individual or £650,000 for a couple. The current rate of Inheritance tax rate is 40% above this amount.

    3. A whole of life policy is medically underwritten, so premiums will usually be cheaper than taking out a guaranteed over 50’s plan, making it more cost-effective.

    4. Most whole-of-life policies can include an Index Linking Option which ensures the sum you are insured for keeps pace with inflation. This can be particularly important for clients looking for a policy to pay for funeral costs upon their death. Please note the monthly premium also increases as the sum assured increases so it’s important to ensure that including this option is affordable.

  • There are two drawbacks to a whole of life insurance policy:

    • You have to be able to afford the monthly premiums and keep them up until you die.
    • Being a medically underwritten policy, if you have any pre-existing medical conditions, you may not be offered cover by insurers. Especially, if they view your medical condition as being too high risk. This should not discourage you from seeking whole-of-life cover though. Our advisers are experienced in finding cover for those with medical conditions. They will search the market on your behalf.
  • Whole of life cover is right for you if you:

    • Are in relatively good health and not obese
    • Have not recently been diagnosed with a medical condition
    • Can afford the monthly premiums 
    • Want to leave a small gift to loved ones after you die
    • Would like to leave a cash lump sum to your family to pay for your funeral
    • Want to be able to be able to help cover a potential Inheritance tax liability*

    *Upon death, Inheritance Tax Liability (IHT) is paid on any part of your estate that exceeds the ‘nil-rate band’. The ‘nil rate band’ threshold currently stands at £325,000 for an individual or £650,000 for a couple. The current rate of Inheritance tax rate is 40% above this amount.

  • When it comes to term life insurance and whole of life insurance, each has its merits.

    Term life insurance will be cheaper than whole of life cover when it comes to comparing premiums. This is because you may not die during the term of the policy. If this is the case, the policy ends and there will be no payout. Insurers can offer cheaper premiums, as this is the risk that you take when you take out a term insurance policy.

    With a whole of life policy, premiums are more expensive as the policy is guaranteed to pay out upon death, whenever that may be. Whole of life means that as long as you keep paying your monthly premiums, you will be covered, which offers many clients complete peace of mind.

    We recommend speaking with your Future Proof adviser. They will compare both premiums. They will also discuss your health and contact insurers anonymously ahead of any application to gauge their response.

    If an insurer is looking to charge extra based on ill health, whole of life may be out of the question when it comes to affordability. In which case, term life insurance may be your only option. In this situation, we can look into the best term of policy for you. Whether that be to age 70, 80 or 90 years.

    Our advisers find cover every day for people with tricky medical conditions.

    They will search the market so you don’t have to. Finding the most cost-effective, comprehensive coverage by approaching the most sympathetic insurers. What is more, their advice is no-obligation. Take a look at the table below. It compares the difference between whole of life premiums with term insurance premiums of a policy that runs until age 90 years.

    Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

How the premiums compare for Level term assurance vs whole of life insurance

AgeTermAmount insurance in £Monthly premium (£)
40Level term to age 9020k£6.17
40Whole of Life cover20k£13.85
60Level term to age 9020k£19.37
60Whole of Life cover20k£32.46

Here are some frequently asked questions from our clients:

  • There are many providers that offer whole of life insurance. 

    Each charge different rates and have different opinions on various medical conditions. It would be difficult for an individual to compare the small print of each whole of life insurance provider.

    It should be noted that each individual is different. What might be the best insurer for one may not be for another. Our advisers will guide you through the small print, underwriting and premium comparisons to find you your ‘best’ insurer.

  • There is no maximum amount of cover you can get on a whole of life policy. However, a maximum amount of cover would depend on:

    1. How much can you afford to each month in premiums?
    2. Is there a justifiable reason for cover that accounts for the amount you are insuring?
  • Your whole of life cover is guaranteed to payout on the condition that you have kept up with all of the premiums. You must also have been truthful in your application and not left anything out that might be construed as non-disclosure. What is non- disclosure?

  • If you can afford the premiums you can take out multiple whole of life policies. We have had client’s who have taken out more than one policy to top-up a policy already in place. It is worth speaking with an adviser though, to check if it wouldn’t be more cost-effective to have one policy in place.

  • It is possible to take out a joint whole of life policy. It is important to remember though that this means there will only be one payout. You need to make sure that there will be no further need for cover for the remaining partner. 

    You should bear in mind that it may not be possible for the surviving partner to get cover later in life. They may be over the maximum age of 88 years to be accepted.

    As they will be older, the premiums will be more expensive, maybe prohibitively so. Or, they may have suffered medical issues since the policy was taken out leaving them declined by insurers.

    Our advisers will advise you on the best course of action and whether a joint or single policy would be the best for your circumstances

  • Whole of life cover lasts until you die, but only if your monthly premiums are kept up to date. 

The frequently asked questions below relate to the medical side of whole of life cover:

  • It is possible to get whole of life insurance without a medical. Your own medical circumstances and amount you would like to insure will dictate if this possible.

  • The maximum age restriction of getting whole of life cover is 88 years old depending on the insurer.

  • If you have a pre-existing medical condition, its type and severity will predetermine if you are able to get whole of life cover. 

    An insurer may offer cover with a higher premium which is called a rating or loading. The higher premiums reflect the additional risk that your medical condition poses to your life. This may mean that they will have to pay out an early claim.

    With a pre-existing condition, part of our process is to pick up the phone and call insurers to ask for their opinion before you apply.

    We work with a range of well-known protection insurers, as well as specialist insurers that do not deal directly with the general public. Based on this outcome, we then help you apply to the most sympathetic and get you cover at an affordable price.

    If you have many and serious pre-existing medical conditions, you may not be offered whole of life cover by insurers. In which case, Future Proof will then explore Guaranteed over 50s life cover as an alternative.

  • The whole of life premiums that Future Proof advise on, do not increase with age. They are guaranteed at start of the policy.

How much does whole-of-life cover cost?

The simple table below gives an idea of the cost of whole of life cover. It is important to note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

AgeTermAmount insured in £Monthly Premium (£)
40WOL20k£13.83
60WOL20k£32.46

Can I get a whole of life policy online?

You will be able to get a whole of life quote online. But whilst the process can start online, it will be more involved than just filling in a form online and walking away with a policy in place. This is because the policy will have to be medically underwritten. 

The process can be expedited by speaking to an expert adviser, who knows the market and the process. Future Proof advice is no obligation. We get paid by an insurer if you decide to take a policy out with them.

Whole of life policies relating to claims and payouts

The frequently asked questions below relate to the medical side of whole of life cover:

  • There is no investment value in the Whole of Life Insurance policies which we arrange. If you cancel or stop paying your premiums, you won’t get any money back.

  • Unfortunately, you won’t be able to convert your whole of life policy to a term life insurance policy. Insurers would request that you set up a new term life insurance policy. Then once on risk, cancel the whole of life policy, ensuring that your cover is seamless.

  • To get a realistic quote for whole of life insurance that takes into account any health conditions and your budget. It is best to call our friendly advisers on 0800 644 4468 or request a call back [fp-modal]. What matters is the premium payable after your application has been assessed. We check with insurers on your behalf ( anonymously) before you apply to save you time applying to insurers that may end up unaffordable.

  • We would recommend you speak to one of our advisers about getting a whole of life policy.

    Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget.

    We speak with insurers and find out their opinion on any medical conditions that you may have, ahead of an application. What really matters is the premium you are offered, after your application has been assessed. This saves our clients time and money.

    Call Freephone 0800 644 4468Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

    Please feel free to read our Independent client reviews, or read about the team at Future Proof