“Whole of Life” Insurance Policies, What you need to Know. “Whole of Life” Insurance Policies, What you need to Know. During the 80’s, 90’s and early 00’s many people in Ireland were sold “Whole of Life Insurance Policies”, A policy that will protect the financial health of your family no matter what age you die, sounds too good to be true right? Unfortunately in many cases it was. There was one big catch– you have to keep up the repayments up until the very end. There are essentially two types of these Whole of Life Insurance policies, (1) Guaranteed Whole of Life & (2) Reviewable Whole of Life. It is the latter “Reviewable” policies which have received a lot of negative media...
Continue reading...
What is Whole of Life Insurance? Whole of Life Insurance pays out a lump sum whenever you die, provided your premium payments are up-to-date. Because we all have to go sooner or later, it is inevitably more expensive than term insurance, which only provides cover over an agreed number of years. The proceeds of Whole of Life Insurance are not liable to inheritance tax as long as the policy is held in trust. It is vital to take advice about setting this up. But the cash sum payable on death can be used to pay any outstanding inheritance tax on the estate of the deceased. Inheritance tax is currently charged on at 40 per cent on all assets above a £325,000 threshold, although with careful...
Continue reading...
It looks like JavaScript is disabled in you browser, enable it to experience this site. What is a Whole of Life insurance plan? These types of life insurance policies will always pay out whenever the insured person dies. The plans differ from most other forms of life insurance as the cover does not end at a given date. Therefore, the plan guarantees to pay a pre-determined benefit at some at some point in the future. This explains the name relating to the provision of cover for the whole of the policyholder’s life. Assuming all premiums have been paid and the plan is still in force, it guarantees to pay out the specified benefit regardless of when the insured person dies. How are...
Continue reading...
Whole of Life Insurance What is Whole of Life Insurance? Whole of life insurance lasts throughout your life, unlike term insurance which is for a specified period only. This means that your dependants would be guaranteed a payout. Whole of life assurance can also be be used as part of your Inheritance Tax Planning where your estate is likely to exceed £325,000 (2018/19) limit). A whole of life policy can be used to cover part or all of any inheritance tax (IHT) liability you may have. We would always recommend that the policy be placed in trust and can provide the necessary advice for this. Whole of life assurance can be a useful way of ensuring your dependents have enough money to...
Continue reading...
Charlie Weston: Mis-sold whole-of-life insurance policies can mean a nasty surprise as years go by Reviewable whole-of-life insurance policies continue until a person dies. They are sold as a combination of a savings plan and life cover. With these policies premiums are invested in unit-linked funds. The idea was supposed to be that your money grows at a certain rate. This is supposed to provide an element of protection to the life assurer, and give you a surrender value in the event that you cancel your policy. If you pay a premium of €100 a month on a reviewable policy, typically €50 of this will go into a unit-linked investment fund, with a further €50 used for the life-cover part of the...
Continue reading...
Term Life vs Whole of Life Cover What Is The Difference? With the number of various policies on offer, life insurance can be seen as confusing. To help give you a better understanding, we take a look at the difference between term life insurance and whole of life cover. Term Life Insurance The key thing to remember with this type of cover is the word ‘Term’. This refers to the length/years of your policy. If you were to pass away during your term, your policy would pay out. However, it must be noted that if you outlive the term of your policy you will not be paid out as these are the terms and conditions of this particular level of cover. A perfect example of term life insurance is as...
Continue reading...
1. Your Budget Is Tight and Life Insurance Isn’t an Immediate Need Make no mistake about it, maintaining a whole life insurance at this point in your life will be expensive. And there will come at a time when you will be paying for medical expenses related to childbirth and the care of a baby, possibly for childcare, and for acquiring all of the goods and services that’ll be necessary as your baby grows into a toddler, and so on. In that environment, life insurance simply isn’t an immediate need. There are all kinds of financial obligations that need to be met, so you will need to keep the cost of your life insurance to a minimum. You can do that through a term life insurance policy. 2....
Continue reading...
Whole of Life Insurance Cover: Your Guide While a term life insurance policy lasts for a specific timeframe, a whole of life insurance policy lasts for the lifetime of the insured. Therefore, a whole of life insurance policy will always pay out, providing beneficiaries with a lump sum of money. Since a payment is guaranteed, whole of life coverage is more expensive than term life insurance. However, it is a convenient way to provide surviving family members with money and it can be combined with other insurance, including a term policy, to cover specific debts. How a Whole of Life Policy Works The insurance company invests the monthly premiums paid for a whole of life plan. For the first...
Continue reading...
A life insurance policy is one of the tools that can help you prepare for the unexpected. There are two kinds of life insurance policies, the first is term life insurance, and it gives you coverage for a specific period. If you pass away while your policy is still active, the nominee receives the policy benefit. On the other hand, whole life insurance offers life-long protection. It also has a cash value that allows you to borrow money from the policy as and when needed. You may purchase both, a whole life insurance as well as a term insurance online.Before you do that, however, you should get an in-depth understanding of both these policies. A whole life insurance policy, like its name...
Continue reading...
Guaranteed tax-free payment whenever you die Whole-of-life policies tend to offer the policyholder lifelong protection and are designed to give you a specified amount of cover for the whole of your life and pays out when you die. Because it’s guaranteed that you’ll die at some point (and therefore that the policy will have to pay out), 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...
Continue reading...
