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Whole of Life Insurance

What is whole of life insurance?

A whole of life insurance policy guarantees to pay out a cash lump sum to your beneficiaries after you die. You continue to pay premiums for as long as you live, hence the name whole of life.

This differs from the more common term-based policies, which are only valid for a specified period of time (or term). This means premiums are only paid during this term, but if you do not die within this time frame no pay out is made and the policy expires.

As a result, whole of life cover is sometimes referred to as life assurance because your policy is assured to pay out at some point, provided you continue to pay your premiums.

Almost all whole of life insurance claims were paid out in 2015 (99.99%), totalling £389 million. – (source: abi.org.uk)

Whole of life cover - Guarantee a pay out

There are 2 kinds of whole of life cover:

  1. The simplest kind, and the type we sell at Reassured, is known as non-investment. Here you pay for policy cover until you pass away, at which time your loved ones receive a guaranteed cash lump sum.
  2. There is also an investment whole of life option, which we do not sell. Here some of your premium is invested by the insurer and the final pay out sum is dependent on how the investment part of your policy performs.

Is whole of life insurance for you?

As a result of a pay out being guaranteed, assuming you pay your premiums, the monthly cost is generally higher compared with term-based policies offering similar coverage.

Whole of life policies are best suited to those who want the certainty of a pay out, as well as for those who have the funds to continue paying their premiums well into old age.

As these policies last as long as you live, it is also a good option if you do not want to continue renewing cover. Once you have taken out a whole of life policy, you may not need to worry about it ever again, even if you fall ill.

On occasions, whole of life is employed as an extra level of protection, over and above a term-based policy, which for example could protect your property for the duration of your mortgage term. Leaving your whole of life cover dedicated to providing an inheritance or cover funeral costs.

It depends on your individual circumstances, budget and what it is you want to protect. There are various policy options available; over 50s plans, term-based cover or even funeral plans.

We compare all of these options with whole of life below.


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Whole of life insurance in summary:

Pro’s

Con’s

Why use Reassured to compare whole of life insurance?


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