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Compare Whole life insurance

A whole life insurance policy is also known as whole of life insurance and provides your family with a guaranteed lump sum payment on death. This is one of the most comprehensive types of life insurance because of the fact that it guarantees a payout.

Whole life insurance is designed to protect your family for later life so can be used for a number of reasons, such as:

  • Inheritance Tax planning (IHT)
  • Leaving a legacy
  • Funeral costs and other expenses

If you need expert advice then you can contact our specialist advisors on 0800 009 6559 or CLICK HERE.

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This a type of life insurance policy that provides a guaranteed lump sum payment to your loved ones when you die. It works in exactly the same way as any other life insurance policy apart from that it is guaranteed to pay out.

The main other type of life insurance is called ‘term life insurance’ because it is taken over a term which is a period of time. The most common types of term life insurance policies are:

Which life insurance is better whole or term?

It really does depend on exactly what you want to take out life cover for and what you need to protect.

There are a few questions that you could ask yourself:

  • Am I happy to pay higher premiums for life insurance? Whole of life insurance premiums are higher than term life insurance premiums because the pay-out is guaranteed
  • Do I really need a guaranteed pay out? You might have money set aside or property to pass to your family in the event of your death
  • Can I afford life insurance premiums after I retire? It is something to consider as most policies will continue to collect premiums up to age 90 which can be difficult for some people
  • Will my family really need a lump sum when I’m older? Your children will be grown up and hopefully less dependent so will they need a lump sum at that stage in their lives

Is whole life insurance worth it?

There is great value in whole life insurance for many people but you must be certain that this is the right cover for you.

Whole of life insurance is a very long-term policy so will be something that you will be paying in to for many years. You should very carefully consider your options for this before you commit to taking a policy.

Some modern whole of life insurance policies have also made this type of cover much more affordable and premiums have dropped dramatically recently.

You should calculate the amount that you would pay in premiums up to age 80 or 90 to see how it compares. Also depending on your health, you might want to consider looking at other options if premiums are too high.

Best whole of life insurance in the UK

There are three main types of whole of life insurance and some are more common than others.

  • Over 50s life insurance (guaranteed acceptance) is the most common type of whole of life insurance. One of the reasons why this type of cover is so popular is because of how simple it is and there are no medical questions to answer (hence the name ‘guaranteed acceptance’). The most common purpose for this cover is to pay for funeral costs and other related costs. These policies normally have a 12 or 24 month qualifying period before claims will be paid
  • Whole of life insurance (standard insurance) is a fully underwritten life insurance policy that pays out a lump sum to your family on death. Most common reasons for this type of cover are funeral expenses, Inheritance Tax Planning, and proving a legacy on death
  • Whole of life insurance (investment linked) is also an underwritten type of insurance that is also linked to an investment vehicle. There are two main types of this cover which is a ‘with-profits’ policy which is where the insurer uses your premiums to invest and the ultimate benefit comes from the profits of those investments. The other type is ‘unit-linked’ which is where you choose the investment funds that you wish to invest in

How much does whole of life insurance cost?

It is fair to say that whole of life insurance premiums will be higher than term life insurance premiums. Both of these policies are underwritten in the same way so price will vary depending on:

  • Amount of cover (this is the main factor in calculating your insurance premiums)
  • Date of birth (the older you are the higher the premiums will be)
  • Insurance provider (some insurers are more expensive than others)
  • Health & Lifestyle (any pre-existing medical conditions that you have, smokers, and people with less healthy lifestyles may pay more)
  • Occupation and activities (if there are risks involved with these for you)

You can save money by speaking to one of our whole of life insurance experts FREE on 0800 009 6559 or CLICK HERE.

Cheapest whole of life insurance

There are some whole of life insurance providers that are far more competitive than others, but also there are several options to consider.

Some of the reasons why some providers whole of life insurance might be cheaper than others include:

  • Payment collection age might be later than others and some providers may require you to make payment for longer
  • Increasing premiums means that the monthly cost of cover can increase over time and especially with some activity based policies
  • Investment linked policies can be far higher risk as they are based on the performance of a fund or group of funds

You should check your whole life insurance quote very carefully to make sure that it’s right for you and speak to your advisor if you have any questions.

Our main insurance partners for whole of life insurance include:

There really is no actual limit on the amount of cover that you can take so it is very unlikely that you’ll struggle to get enough cover.

Is a whole of life insurance claim tax-free?

There are several elements to consider when you look at the tax treatment for a whole of life insurance claim, such as:

  • Capital Gains Tax (CGT) won’t be payable on any benefit payment from a whole of life insurance cliam
  • Income Tax also won’t be charged on the payments received by your family
  • Inheritance Tax (IHT) may be payable if the amount of benefit takes the value of your estate above the IHT threshold

You can protect your whole of life insurance benefit from inheritance tax by writing your policy in to Trust.

We also offer a FREE Trust Service to make sure that your cover is as tax efficient as it can be.

Common myths about whole of life insurance

Life insurance can be confusing and so it’s common for people to misunderstand what each policy does and how it works.

Here are some of the most common myths about whole of life insurance:

  • It won’t pay out at the end of the term: This isn’t the case and once policies are underwritten, the payout should be guaranteed
  • Premiums increase over the term: Most policies are sold on a guaranteed premium basis which means that they’re fixed for the whole term
  • Savings accounts are cheaper: It is very rare that a savings account will come close to the benefits paid out from a whole of life insurance policy
  • I can cash my policy in: A whole of life insurance policy does not have a cash in value at any point in the policy

Can I have a whole of life insurance policy?

Another thing that can be confusing for people is understanding whether it’s possible to actually get cover in the first place.

There are two main criteria for being able to apply for whole of life insurance:

  • Are you over 18
  • Do you have a UK bank account and resident in the UK

Why should I take out whole life insurance with iam|INSURED?

We’re extremely proud to the UK’s #1 rated whole life insurance EXPERTS with our AMAZING customer service rating of 5.0 out of 5.0 Stars on Feefo.

You can contact one of our FRIENDLY experts and get the BEST cover to protect your loved ones. We’re constantly reviewing our insurance partners to make sure that we give you the lowest premiums.

  • Price Match Promise
  • FREE expert advice
  • No obligation
  • FREE policy Trust service
  • 100% customer rating

Getting whole life insurance with iam|INSURED is quick and easy, and we also have over 20 years expertise in helping people with:

  • Pre-existing medical conditions
  • Dangerous occupations
  • Hazardous activities and extreme sports

We’re proud to be the UK’s #1 whole life insurance experts for people with pre-existing medical conditions.

Our team has over 20 years expertise in helping people with all types and levels of medical conditions to get the cover they need. You’re absolutely in the right place if you’re looking for whole of life insurance with pre-existing medical conditions.

The simple answer is YES you can get whole of life insurance with a pre-existing medical condition.

The best whole of life insurance policy for people with a medical history is often an Over 50s life plan. This is simply because this type of cover is ‘guaranteed acceptance’ and therefore has no medical underwriting.

Premiums for Over 50s life insurance are the same for everyone regardless of your health.

Standard whole of life insurance is underwritten in the same way as term life assurance. Therefore you will need to disclose information about your medical history when you apply for this type of cover.

Some of the most common medical disclosures for this are:

Need whole of life insurance advice?

It is important to make sure that you pay the right price and get the best cover to protect your home and your family. You can speak to one of our EXPERTS to get FREE and FRIENDLY advice by calling 0800 009 6559 or CLICK HERE.

Useful resources

Finder.com – Life insurance statistics

Statista – Life insurance industry in the United Kingdom (UK)

iam|INSURED – Frequently asked life insurance questions

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