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Whole of life insurance calculator UK

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.

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Work out how much whole of life insurance you might need. Simply fill in the fields which apply to you for an instant calculation.

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£127,140 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Finder.com
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The average monthly household budget in the UK is £2,700 (that’s £33,000 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The total unsecured debt per UK adult is £4,170. Credit cards, personal loans and overdrafts being are common forms of debt. The average credit card debt per household now stands at £2,476.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Themoneychariy.org.uk
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According to SunLife, the average cost of a funeral in the UK is £4,141 (with the overall cost of dying at £9,658).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£8,000 per year for part-time care), school expenses (£1755.97 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this can be £9,250 per year for students studying a course leading to a degree).

Sources: Daynurseries.co.uk, Actionforchildren.org.uk, Aru.ac.uk
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65% of young adults (under 41 years) say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Standardlife.co.uk
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If you’re lucky enough to have your own savings or are part of the 35% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Forbes.com
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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…

What is whole of life insurance?

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.

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Whole of life insurance policy [Key points]:

  • Guaranteed pay out - Whole of life insurance provides lifelong cover, guaranteeing a pay out when you pass away not if
  • Fixed sum assured - Choose how much cover best meets your needs (up to a maximum of £1,000,000)
  • Fixed premiums - The price you pay for cover won’t change over time. You’ll need to pay premiums for the rest of your life to keep cover valid
  • Joint cover - Whole of life insurance can be taken out on a joint policy basis, allowing two lives to be covered under one policy
  • High pay out rates - In 2022, almost all whole of life claims were paid out (99.99%)[1]

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.

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Why Reassured for whole of life insurance?

  • We’re the UK’s largest life insurance broker *
  • Compare quotes from the whole of the market through our advised team
  • We’re rated as ‘Excellent’ on Trustpilot from over 80,000 customer reviews
  • Receive expert recommendations on what’s best for you & your loved ones
  • All quotes are personalised, fee-free & without obligation
  • We offer a FREE trust writing service (available with most policies) to minimise / avoid 40% inheritance tax
  • Our service is FCA (Financial Conduct Authority) regulated
  • Whole of life insurance quotes start from just 27p-a-day through us

How does whole of life insurance work?

Whole of life insurance works as simply as:

  1. Apply for cover - You can apply for whole of life insurance through our advised service. A member of our friendly team will take your circumstances into consideration, compare quotes and provide recommendations on what policy is likely to be best for you
  2. Pay for premiums - Once you’ve been accepted for cover and your policy is in place, you’ll need to pay your premiums for the rest of your life
  3. Make a claim - Upon your passing, your loved ones can contact your insurer to make a claim. A claims form will be sent which will need to be filled in and sent back to your insurer
  4. Receive pay out - Once a claim has been assessed and deemed valid, a lump sum payment will be made to your loved ones

Uses for whole of life insurance:

When filling out our whole of life insurance calculator, you may want to consider the following costs:

  • Mortgage - The average mortgage debt per UK household is £132.378[2]
  • Household bills - Up to £399 per month could be spent on council tax, gas, electricity, water and home insurance[3]
  • Family living costs - The cost of raising a child until the age of 18 is estimated to cost £166,000 (rising to £220,000 for a single parent)[4]
  • Funeral costs - A basic funeral now costs £4,141 in the UK. With the overall cost of dying standing at £9,658[5]
  • An inheritance - Less than 1 in 3 people receive an inheritance in the UK[6]. However, a cash gift could be extremely beneficial for your loved ones
  • Inheritance tax - The average inheritance tax bill in the UK reaches £215,000[7]

What is the cost of whole of life insurance?

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 Vitality
 		 Royal London Legal & General
 
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 Vitality
 		 Royal London Legal & General
 
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 »

Best whole of life insurance UK

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:

  Royal London
 		 Vitality Legal & General
 		 Zurich
Available toUK residents aged 18 - 89UK residents aged 16 - 74UK residents aged 18 - 84UK residents aged 16 - 83
Additional featuresHelping 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)4.2
('Great')		4.3
('Excellent')		4.1
('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.

Save Money » Compare Multiple Whole of Life Quotes

Whole of life insurance for inheritance tax

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.

Writing your policy in trust provides the following benefits:

  • Have more control over your policy
  • Avoid / minimise a lengthy probate process
  • Avoid / minimise 40% inheritance tax

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 vs term insurance

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:

  • What stage of life are you at?
    Taking out whole of life insurance at a young age could mean you’re paying premiums for a very long time and could result in you paying more than the policy will pay out. It’s often suited to those who are later in life but still in good health.
  • What do you need to cover?
    Each policy is well suited to protecting different costs. For example, term life insurance is often an ideal choice to protect a mortgage as you can mirror your remaining mortgage balance and sum assured. Whereas whole of life insurance can guarantee a pay out to cover funeral costs and/or an inheritance.
  • How long do you need cover for?
    If you only need cover for a set period (for example until your children are grown up) term life insurance could be more suitable. Whole of life insurance could be beneficial for those wanting lifelong cover to ensure loved ones have a lump sum to cover inheritance tax bills.
Whole of life insuranceTerm life insurance
Provides lifelong coverProvides cover for a specified period
Pay out is guaranteed to loved onesPay out is made if you pass away during the term
You’ll need to pay monthly premiums in order to keep cover validYou’ll need to pay monthly premiums in order to keep cover valid
Premiums will be calculated using your personal circumstances and policy detailsPremiums will be calculated using your personal circumstances and policy details
Suited to those who are later along in life but still in good healthSuited 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 billCan help to cover a mortgage and /or family living costs
Available through the advised team at ReassuredAvailable 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.

Is whole of life insurance worth it?

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:

  • Want to provide a guaranteed lump sum pay out (perhaps to help with funeral costs and/or an inheritance tax bill)
  • Are in good health and are looking to secure a larger sum assured than an over 50s plan could offer

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.

Benefits of using a whole of life insurance calculator

  • Receive an instant calculation
  • Get a better understanding what you need to cover
  • Learn how much cover you’re likely to need
  • Accurate calculation using your key costs and financial commitments

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.

Whole of life insurance quotes

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?

Compare Whole of Life Insurance »

Sources:

[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.gov.uk/government/statistics/inheritance-tax-liabilities-statistics/inheritance-tax-liabilities-statistics-commentary

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