WITH YOU TO THE END
Whole of Life Insurance differs to Term Life Insurance in that it lasts as long as you do. Upon the death of the whole of life policyholder - a cash lump sum should be paid out to the beneficiaries. With Term Insurance, only a specified term is covered - ie. 20 or 30 years, and once the policy matures, it has no cash value if the policyholder is still living.
Whole of life insurance is guaranteed to remain in place provided the premiums are always paid. Many people use it to know that these important things will be taken care of after their death : Estate planning, income for family and surviving spouse, funeral expenses.
Some may find whole life less ideal for insuring: temporary needs, such as children's dependency years, or young families with large needs and limited income. In these cases many consider a Term Life Insurance Cover.
Many people take out a Whole of Life Insurance policy in order to provide a means to pay any Inheritance Tax which may be due. When you die - all assets over ?375,000 are liable for a 40% Inheritance Tax. A whole of life policy can be incorporated into and written under a Trust. This would mean that if a tax-free lump sum is paid out when the policy matures, and this sum could be used to pay towards any Inheritance Tax due.
Speak to MayFair Consultancy today for a free professional and unbiased review of your situation - whether you have any existing cover or not.