Whole of Life Protection Plan – Overview

Pays out a lump sum in the event of death on either single, joint 1st or 2nd death basis. This contract has guaranteed premiums unless Indexation (using RPI) is chosen.

Target market

Family

Where a lump sum is required to:

  • Cover the expected IHT bill.
  • Provide financial support to a partner or dependant.
  • Cover the cost of funeral expenses.

Business

Can be paid in instalments of 2, 3, or 5 years. Only available for business cover.

  • Cover the loss of a key person.
  • Where a benefit is required to purchase the shares owned by a director or partner.
  • Where a benefit is required to cover an interest only business loan.

Suitable if customers

  • Do not want their cover to have a fixed end date.
  • Want the level of cover to remain the same throughout the term of the policy (Unless indexation chosen).
  • Want either single, joint 1st or 2nd death basis.
  • Need a lump sum in the event of death and have dependants and are not willing to self-insure or do not have funds elsewhere.
  • Have potential IHT concerns or business interests.
  • Have medical conditions that do not prevent provisions of cover, and who are happy to be medically underwritten.
  • Can afford monthly/yearly premiums for Whole of Life Protection Plan and are UK resident.

Unsuitable if customers

  • Want to stop paying premiums but still want cover to continue.
  • Only need cover for a fixed period.
  • Want their premiums and sum assured to decrease over time.
  • Want a product to pay a monthly benefit if unable to work for a period of time due to accident or injury (IPB) or customers who want cover for a specific list of illnesses or conditions (CIC) Or Customers who want to receive a monthly benefit in the event of death or earlier Critical Illness (FPIP/CIC).
  • Don't need a lump sum on death or without dependents and are willing to self-insure and have sufficient funds elsewhere.
  • Require a non-medically underwritten journey due to their state of health or illness.
  • Are not UK resident.

Amount of Cover

No minimum sum assured. Driven by minimum premium.

Maximum sum assured -

  • £2 million - if Indexation is chosen and the life insured is aged up to 70.
  • £1 million - if Indexation is chosen and the life insured is aged 71 to 84.
  • £5 million - if life insured is aged up to 69.
  • £2 million - if life insured is aged 70 to 79.
  • £1 million - if life insured is aged 80 to 84.

The amount of cover remains the same throughout until a claim is made unless Indexation is chosen.

Age restrictions

  • The minimum age to take out a policy is 18. It is possible for a life of another policy to be taken on a 17 year old by an adult with insurable interest. This policy can then be placed in an Absolute trust with the 17 year old as the beneficiary. 
  • The maximum age for a buying a policy is 84.

Premiums

  • Guaranteed.
  • Payable monthly or annually by Direct Debit or cheque.

Benefits automatically included

Other information

  • Policy can be assigned or owned by a third party.
  • Policy can be sold for Inheritance Tax purposes.