How does life insurance work in UK?
11 min
Securing life insurance doesn’t have to be confusing. Read…
Working out a large sum of money can seem daunting when taking out whole of life insurance, but it doesn’t have to be.
Thankfully, it’s now possible to estimate this figure using a whole of life insurance calculator (like ours below).
As whole of life insurance lasts for life, when calculating how much cover you need, you’ll want to consider not only your current financial commitments but also anything that could potentially arise in the future.
Whole of life insurance is available through our advised team. If you think this product is right for your needs, you can request to speak with an advisor about the options we have available.
Through our expert team you can compare fee-free quotes from the whole of the market to find the best available deal.
Continue reading to learn more about whole if life insurance, how much it costs and how you secure this policy type…
Whole of life insurance is a type of policy which guarantees to pay out a cash lump sum to your loved ones upon your passing.
This makes it a form of ‘life assurance’ as your policy is assured to pay out, in contrast to term life insurance which will only pay out during a set term.
Whole of life insurance policy [key points]
Why not compare whole of life insurance through Reassured? A friendly member of our advised team can provide you with quotes from the whole of the market.
Whole of life insurance works as simply as:
The cost of whole of life insurance will depend on your personal circumstances.
During the application process, you’ll need to answer a questionnaire which will allow insurers to accurately calculate your monthly life insurance premium.
The application questionnaire will require you to provide information on:
Due to providing a guaranteed pay out, whole of life insurance tends to be more expensive than other policy options (such as level and decreasing term life insurance).
Below are some example prices or whole of life insurance for different cover amount.
How much is a £50,000 whole life insurance policy?
The table shows example quotes for a whole of life insurance policy with a cover amount of £50,000 for a non-smoking applicant in good health:
Age |
|
| |
---|---|---|---|
20 | £8.86 | £24.99 | £26.30 |
25 | £9.68 | £28.63 | £26.30 |
30 | £10.44 | £33.10 | £28.10 |
35 | £13.91 | £38.38 | £39.65 |
40 | £16.55 | £45.62 | £44.70 |
45 | £20.01 | £53.37 | £53.20 |
50 | £24.99 | £59.99 | £53.20 |
How much is a £100,000 whole life insurance policy?
The table shows example quotes for a whole of life insurance policy with a cover amount of £100,000 for a non-smoking applicant in good health:
Age |
|
| |
---|---|---|---|
20 | £15.80 | £41.85 | £50.60 |
25 | £18.07 | £49.08 | £50.60 |
30 | £20.03 | £59.23 | £54.20 |
35 | £26.77 | £69.83 | £77.30 |
40 | £32.45 | £84.00 | £87.40 |
45 | £38.71 | £99.34 | £104.40 |
50 | £48.33 | £112.94 | £124.20 |
As you can see from the tables, the price you pay for cover can depend on which insurer you secure a policy with and the sum assured you choose.
The whole of market comparison service offered by our advised team could help you find the best available deal for your personal circumstances.
Simply contact a friendly member of our team today to request this form of cover.
What’s the average cost of whole of life insurance? Read our in-depth average cost of life insurance article to find out »
The best whole of life insurance will be the policy that meets your needs and fits within your budget.
The table below details whole of life insurance offered by some of the UK’s best life insurance companies:
|
| |||
---|---|---|---|---|
Available to | UK residents aged 18 - 89 | UK residents aged 16 - 74 | UK residents aged 18 - 84 | UK residents aged 16 - 83 |
Additional features | Helping Hand Service, joint cover, guaranteed insurability, waiver of premiums (add for an additional cost) | LifestyleCare cover, receive up to 40% off your premiums in your first year when leading a healthy lifestyle, access to discounts from a variety of household brands (such as 50% off a Virgin Active gym membership) | Accidental death benefit, guaranteed insurability, increasing cover, joint cover, waiver of premiums (add for an additional cost) | Terminal illness cover, increasing cover, milestone benefit, guaranteed insurability, joint cover accidental death benefit, waiver of premiums (add for an additional cost) |
Trustpilot score (out of 5 stars) | 4.0 ('Great') | 4.2 ('Great') | 3.9 ('Great') | 4.0 ('Great') |
Pay out rate % | 99% of all life claims | 99.7% of all life claims | 96.7% of all life claims | 98% of all life claims |
Please note, while some insurers mentioned above may offer cover from age 16, you must be aged over 18 to secure cover through Reassured
As you can see, the whole of life policies offered by different insurers can vary significantly.
This is why it’s essential to compare multiple quotes to ensure you’re getting the right policy to meet your needs at the best price.
Use our advised service to compare quotes from all UK whole of life providers. Quotes are fee-free and without obligation.
Often, whole of life insurance is taken out with the intention of allowing your loved ones to pay any inheritance tax bills that may arise after your passing.
Inheritance tax is currently charged at 40% on any value that takes an estate over the threshold of £325,000.
Your estate is made up of any property, savings, possessions and life insurance proceeds. Therefore, for those with a large estate, loved ones could be left with a significant inheritance tax bill.
In this instance, a whole of life insurance policy could be written in trust. This process helps to detach your policy from your estate, allowing the pay out to help cover the remaining bill.
For more information on writing your life insurance in trust why not read our handy guide? Alternatively, you can speak to a friendly member of our team who can explain the process.
Whole of life insurance lasts for the rest of your life, guaranteeing a pay out. Whereas term life insurance provides cover for a specified period and will only pay out if you pass away during this period.
If you’re unsure which one is best for your needs, you could ask yourself some key questions:
Whole of life insurance | Term life insurance |
---|---|
Provides lifelong cover | Provides cover for a specified period |
Pay out is guaranteed to loved ones | Pay out is made if you pass away during the term |
You’ll need to pay monthly premiums in order to keep cover valid | You’ll need to pay monthly premiums in order to keep cover valid |
Premiums will be calculated using your personal circumstances and policy details | Premiums will be calculated using your personal circumstances and policy details |
Suited to those who are later along in life but still in good health | Suited to those with a family and / or debts to protect (like a mortgage) |
Can help to provide an inheritance, cover funeral costs and / or cover an inheritance tax bill | Can help to cover a mortgage and /or family living costs |
Available through the advised team at Reassured | Available through Reassured |
We have a full term life insurance vs whole of life insurance guide if you require more information »
Alternatively, contact a member of our advised team who can help you compare both whole of life insurance and term life insurance. It’s fee-free to use our quote service.
Whether whole of life insurance is worth it for you will depend on what you want to cover and your available budget.
Whole of life insurance could be a good option if you:
It’s important to note that, with whole of life insurance, you’re required to pay premiums for the rest of your life.
For this reason, whole of life insurance is often a popular choice for those who are later in life but still in good overall health.
This allows those over 50 with good health to provide a larger pay out sum for their loved ones (compared to an over 50s plan).
Our advised team can take your personal circumstances into consideration to find you the right policy to meet your needs. Simply get in touch for your free and personalised quotes.
Using a whole of life insurance calculator can give you an indication of what you need to cover for your loved ones and estimate what your sum assured should be
In real time you can input your financial commitments and other costs to receive an instant calculation.
This can provide you with a good starting point for your life insurance journey, as when you speak to an advisor you have an idea of what you’re looking for.
Your advisor can then talk through your needs and give details on the insurers that will be suitable for you.
Hopefully this article has outlined the key details of whole of life insurance and allowed you to calculate your required sum assured using our free whole of life insurance calculator.
The cost and cover offered can vary between insurers, which is why it’s essential to compare multiple quotes.
Whole of life insurance is available through our advised service. Simply contact a friendly member of our team to compare whole of market quotes.
Quotes are fee-free and without obligation, so why not get in touch?
[1] https://www.abi.org.uk/news/news-articles/2023/5/protection-insurers-pay-out-6.85-billion-to-support-individuals-and-families/
[2] https://www.finder.com/uk/mortgages/mortgage-statistics
[3] https://www.zoopla.co.uk/discover/buying/what-bills-will-i-have-when-i-own-a-house/
[4] https://cpag.org.uk/sites/default/files/2024-02/Cost_of_a_child_2023_full.pdf
[5] https://www.sunlife.co.uk/funeral-costs/
[6] https://uk.finance.yahoo.com/news/inheritance-fewer-than-one-in-three-093851406.html
[7] https://www.cashfloat.co.uk/blog/money-saving/household-budget/
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