Whole of Life
A Whole of Life Policy is a life assurance contract that has no specific term but can run as it says for the whole of your life. It will pay out a cash sum when you die, as long as you have paid the premiums. It is often used to reduce the impact of inheritance tax and offers a range of options to suit your needs, level of cover and premium you are prepared to pay.
Because death is inevitable, premiums for whole of life cover are more expensive than for the alternative option of ‘term life insurance’.
Whole of Life plans are commonly used to insure against Inheritance tax. If you take out a whole of life policy and write it under trust, your beneficiaries will receive the pay-out which they can use to pay the IHT bill for your family or next of kin. Tax planning is a complex area, and the rules are changing all the time, so you should consider taking specialist advice about putting life insurance in trust.
TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.
TAX PLANNING IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.