Whole of Life Assurance

• Whole of Life Assurance is a lump sum benefit in the event of death, serious illness or both.

 

• Optional benefits can only be added on unit-linked policies.  An example of an additional option is indexation of benefits with inflation (cost of living adjustment).

• Cover is usually whole of life but could be dependent on an investment assumption. For example, if the policy under or over performs in unit growth or policy bonuses additional premiums might have to be paid to keep policy standing.

• Costs vary by age, smoking status and in unit linked cover investment / bonus assumptions.

• In unit-linked premiums and cover are not guaranteed and are subject to investment or bonus performance.

• In Whole of Life policies, premiums and cover are guaranteed and premiums are substantially higher than where guarantees do not apply.

• No tax relief on premiums and no tax on benefit.