Whole of Life Cover
Guaranteed payout whenever you die — for legacy planning and inheritance tax.
Unlike term life insurance, whole of life cover has no end date — it guarantees a payout whenever you die. It is commonly used for inheritance tax planning, leaving a legacy, or covering funeral costs.
What is Whole of Life Cover?
Whole of life insurance provides a guaranteed sum assured that is paid out whenever the policyholder dies — there is no fixed term. Because the payout is guaranteed, premiums are higher than term insurance. Policies can be written in trust to ensure the payout falls outside the estate for inheritance tax purposes.
Who is it suitable for?
Key Benefits
Tax Considerations
When written in trust, the payout from a whole of life policy falls outside the estate for inheritance tax purposes. This means the proceeds are not subject to the 40% inheritance tax charge and are paid directly to the beneficiaries, bypassing probate. This is a significant benefit for those with a potential inheritance tax liability.
Tax treatment depends on individual circumstances and may be subject to change. We recommend seeking independent tax advice.
Example Scenarios
Inheritance tax planning
A couple with a large estate take out a whole of life policy written in trust. When they die, the policy pays out a lump sum to their children, covering the inheritance tax bill without the need to sell assets.
Leaving a legacy
A grandparent takes out a whole of life policy to leave a guaranteed sum to their grandchildren, regardless of when they die.
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Why Choose JK Insurance Brokers?
- Whole-of-market access
- FCA authorised & regulated
- No broker fees
- Business protection specialists
- Personal, one-to-one service
- UK-wide advice