Whole of life insurance is designed to provide cover for the rest of your life. As long as premiums are maintained, the policy is intended to pay out when you pass away, subject to the insurer’s terms and conditions.

Unlike term life insurance, which ends after a set number of years, whole of life cover does not have a fixed end date. This may appeal to those looking for long-term protection.

At Surely, we help you compare whole of life insurance. We introduce you to insurance brokers who work with a range of UK insurers, so you can explore options that suit your needs and budget.

What is whole of life insurance?

Whole of life insurance is a type of permanent life cover. You choose the amount of cover, known as the sum assured. When you die, the insurer may pay this amount to your beneficiaries.

There is no set end date, and the policy can remain in place for life if premiums are maintained.

Because a claim is expected to be paid at some point, premiums are usually higher than with term life insurance.

How does whole of life insurance work?

When you apply, insurers will usually assess your age, health, medical history, lifestyle and smoking status. This process is known as underwriting.

Based on this information, the insurer calculates your premium. If your application is accepted, you will pay regularly to keep the policy active.

If premiums are not maintained, your cover may end. Some policies may build a value over time, but this is not always the case, so it’s important to check the policy terms carefully.

Types of whole of life insurance

Guaranteed premium policies

Your premium is fixed at the start of the policy and will not increase. This can make long-term costs easier to manage.

Reviewable premium policies

Your premiums are reviewed at set intervals, often every 5 or 10 years, and may increase. These policies can start with lower premiums but may become more expensive over time.

Investment-linked policies

Some policies include an investment element, where part of your premium is invested. The value can go up or down depending on performance.

These policies are more complex and carry investment risk, so it’s important to understand how they work before applying.

What does whole of life insurance cover?

Whole of life insurance is designed to pay out a lump sum on death, provided the policy conditions are met.

The payout could be used for funeral costs, outstanding debts, mortgage repayment or providing financial support for your family.

Some people also use this type of cover for inheritance tax planning or to leave a financial legacy.

Policies generally cover death from illness or natural causes. You should always check your policy documents for details of any exclusions or limitations.

Why consider whole of life insurance?

Lifelong cover

Whole of life insurance provides cover without a fixed end date, as long as premiums are maintained.

Financial support for your family

The policy is designed to provide a payout whenever you pass away, which could help support your loved ones financially.

Inheritance planning

Some policies are used to help meet potential inheritance tax liabilities. If placed in trust, the payout may not form part of your estate. Tax treatment depends on your individual circumstances and may change in the future.

How much does whole of life insurance cost?

The cost will depend on factors such as your age, health, smoking status, the amount of cover and the type of policy.

In general, younger and healthier applicants may pay lower premiums.

Because the cover is designed to last for life, premiums are usually higher than term life insurance for the same level of cover.

It’s important to choose a premium you can afford long term, as cancelling the policy may mean losing cover and receiving little or no money back.

Can you add extra cover?

Some insurers offer optional features for an additional cost. These may include critical illness cover, waiver of premium or accidental death benefit.

Adding optional features will increase the cost, so it’s important to consider whether they are suitable for your needs.

Writing your policy in trust

You may choose to place your policy in trust so the payout goes directly to your beneficiaries rather than forming part of your estate.

This can sometimes help speed up payment and may have tax advantages, depending on your circumstances.

Trust arrangements can be complex, so you may wish to seek independent legal advice.

Is whole of life insurance right for you?

Whole of life insurance may be suitable if you want long-term cover with no set end date.

If you only need cover for a specific period, such as until a mortgage is repaid, term life insurance may be a more cost-effective option.

The suitability of any policy will depend on your individual needs, circumstances and long-term affordability.

How to compare whole of life insurance

When comparing policies, it’s important to look at more than just price.

You may want to consider whether premiums are guaranteed or reviewable, the level of cover, any exclusions and how flexible the policy is.

At Surely, we help you compare whole of life insurance options. We introduce you to insurance brokers who work with a range of UK insurers based on the information you provide.

Surely is an insurance broker, not an insurer. We introduce customers to brokers and may receive a commission if you take out a policy. Any policy is subject to eligibility, underwriting and the insurer’s terms and conditions. Cover is not guaranteed and premiums must be maintained for the policy to remain valid.