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Whole of Life insurance is a type of life insurance policy that covers you for your entire lifetime, as long as you continue to pay the premiums. Unlike term life insurance policies that only provide cover for a specified term, Whole of Life insurance provides lifetime coverage, meaning your beneficiaries will receive a payout whenever you die, regardless of when that happens.
Whole of Life insurance policies can be either "with-profit" or "unit-linked." With-profit policies pay out a guaranteed sum assured and a share of any profits made by the insurance company. The amount of profit you receive depends on the performance of the insurance company's investments. Unit-linked policies, on the other hand, invest your premiums in a range of investment funds, with the aim of providing a higher payout than the sum assured.
Whole of Life insurance policies are often more expensive than term life insurance policies, as they provide cover for the entire lifetime of the policyholder. However, they can provide peace of mind for those who want to ensure their beneficiaries receive a payout whenever they pass away, rather than just during a specified term. Whole of Life insurance can be particularly useful for those who want to leave a legacy to their loved ones, cover funeral expenses, or pay for inheritance tax.
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