Whole of Life
Guaranteed whole of life
Guaranteed whole of life insurance provides a guaranteed sum assured payable on death and / or the diagnosis of a pre-determined critical illness in return for a set monthly premium. As the name suggests, the period of cover is not subject to a specific term.
Premiums are fixed at outset and will stay the same throughout the lifetime of the contract unless you choose to increase your level of cover or index link your policy. Unlike a unit linked whole of life plan, this contract has no cash-in or surrender value at any time, which means if you stop paying your premiums the cover will cease and no refund or surrender value will be paid.
Unit linked whole of life
Whole of life insurance provides a guaranteed sum assured payable on death and / or the diagnosis of a pre-determined critical illness. As the name suggests the period of cover is not subject to a specific term. The sum assured is subject to periodic reviews. It is more likely that premiums will need to increase following the review if the policy is affected on a maximum sum assured basis.
The premiums payable are invested in the selected fund(s) and the policy may have a small cash-in value in the later years. In the event of a claim the tax free amount payable would be the greater of the guaranteed sum assured and the value of the underlying units.
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