A whole-of-life insurance policy is designed to give you a specified amount of cover for the whole of your life and pays out when you die, whenever that is. Because it's guaranteed that you'll die at some point (and therefore the policy will pay out on your death), these policies are more expensive than term insurance policies, which only pay out if you die within a certain time frame.
Whole-of-life insurance policies can be a useful way to cover a future Inheritance Tax bill. If you think your estate will have to pay Inheritance Tax when you die, you could set up a whole-of-life insurance policy to cover the tax due, meaning that more is passed to your beneficiaries. To ensure the proceeds of the life insurance policy are not included in your estate, though, it is vital that the policy be written in an appropriate trust. This is a very complicated area of estate planning and you should obtain professional financial advice.
A whole of life insurance cover has a double benefit – not only are the proceeds of the policy outside your estate for Inheritance Tax purposes, the premium paid for the policy will reduce the value of your estate while you're alive, further reducing your estate's future Inheritance Tax bill.
Whether you're a first-time homebuyer, looking to refinance your existing mortgage, looking for lending options for your business, or needing help finding the right insurance coverage, we've got you covered. Contact us today to schedule a consultation and take the first step towards achieving your financial goals.
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