Whole-of-Life Policy

Whole-of-life insurance is a type of insurance policy that pays out to named beneficiaries (typically family members) of an insured person when that person dies, becomes terminally ill or goes into social care (depending on the policy). Whole-of-life insurance differs from life insurance as term life insurance policies have an end date and only pay out if the insured person dies during the policy term. Whole of life policyholders make monthly or annual premiums and the amount the beneficiaries receive (the cover amount) remains constant throughout the policyholder’s life. In the UK, depending on how whole-of-life insurance policies are written, they may be exempt from inheritance tax.