Whole-of-life policies are designed to provide protection against a particular event (or events) throughout your life. They are used for savings and to provide insurance cover, although the balance of these two elements will vary from policy to policy. Whole of life insurance.
Types of whole-of-life policy
Providers offer a number of different types of whole-of-life policies:
Your premiums buy units in one or more investment funds. The value of these units can go up or down in line with the investments that make up the fund, affecting the value that can be used to help pay for the costs of the life cover as the people covered get older. ReAssure’s unit-linked whole-of-life policies could be maximum cover or standard cover policies:
Maximum cover policies allow you to get a higher amount of cover for a lower initial premium. The premium is lower because almost all of it is used to pay the actual costs of your cover during the current review period, with nothing held in reserve to help meet increasing costs in later years.
After 10 years a policy review takes place to work out the cost of your protection benefits up to the next review point, which is usually after another five years. It’s normally necessary to increase your premiums in order to keep the same level of cover. This is because your cover costs more as you get older and your policy is unlikely to have built up any surplus funds to help with the increasing costs.
However, any changes in your health aren’t taken into account when working out the cost of your cover, as long as your premiums are maintained. This means that even though your premiums are increasing, the premium for a new policy could be even higher, depending on your health.
Standard cover policies start with a higher premium, but aim to maintain a more level premium throughout the life of your policy. The aim of the higher premiums is to build a value in your choice of investment funds. This is used to help meet the increasing costs of your protection benefits in later years, reducing the need for your premiums to increase.
Which is better term or life insurance
The level of growth achieved by this investment element cannot be guaranteed though, so your premiums may still need to increase to keep the same level of cover. This is particularly likely once you reach age 65 (which is when life cover costs start to rise sharply), or once the value of your investment funds has been used up.
Provides one or more types of cover to suit your protection needs.
Lifelong Protection Plan explained
The Lifelong Protection Plan is a flexible whole-of-life policy, which provides a cash lump sum when an insured event occurs.
Why you might have this policy
If you have an investment policy, it’s regularly reviewed to see if the premiums you pay are enough to maintain your level of cover. If they’re not, we’ll offer you the choice to increase your premiums.
Depending on the type of existing policy you have, we may have to start a new policy so you can increase your premiums. This policy is then administered alongside your existing policy. We’ll offer you the Lifelong Protection Plan if it’s similar to your existing policy.
You may also have bought the Lifelong Protection Plan because you needed some extra cover.
The Key Features Document explains how the Lifelong Protection Plan works.
The Key Information Document tells you what you might get back from the Lifelong Protection Plan. It uses figures which are based on an example customer, and were calculated using past performance figures.
If you apply for a Lifelong Protection Plan we’ll send you an illustration, which will also show what you might get back from this product. It will use figures which take into account your circumstances and choices, and will be calculated using estimated future growth rates.
Money paid into the policy buys units in one or more investment funds. The value of these units can go up or down in line with the investments that make up the fund, affecting the final value when money is taken.
The easiest way to start searching for fund information is to look at your most recent annual statement and type in the name of one of your funds into the search box below. From this we’ll be able to show you funds that are only available to customers from your original policy provider and your fund type.
Please note that not all funds will be available for your particular policy, so you should look at your policy documents to find out what you can invest in. Remember if you look at the total charges for any of the funds, you may also have product charges too. You can find out about these from your policy documents.
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The majority of our prices are shown online in pence (GBX) apart from former Alico funds which are shown in pounds (GBP).
The value of the units is not guaranteed and can go down as well as up.