Whole of Life Plan

1. A means of making sure you leave a legacy when you die
2. As a lower-cost funding alternative to pay your inheritance tax

It's also possible to create a plan for both of these purposes.

In days gone by, people looked forward to retiring by age 65, enjoying a retirement of maybe 10 to 15 years and leaving a legacy. Usually, this legacy would mostly consist of the value of their home.

But much has changed over recent years:

• Retirement will be later in the future and less certain.
• Many can now expect to live well into their 80s or 90s.
• Living with chronic health conditions is more likely, as is the need for residential and/or nursing home care.
• In larger families (where there could be several beneficiaries with spouses) family structures can be more complicated – which can lead to problems regarding who gets what!

A Whole of Life Plan can be used to ensure that you are able to leave a legacy to the beneficiaries of your choice, whatever the future brings.

Whole of Life Insurance provides a lower cost alternative way of meeting a future inheritance tax obligation – and the savings can be very significant.

Imagine a couple (both aged 60) with a potential future inheritance tax bill of £100,000.

• Instead of doing nothing and paying the £100,000 inheritance tax bill from their estate when they have both died, they decide to take out a Whole of Life Plan today.
• They choose a plan which guarantees to pay out £100,000 when they have both died, at a cost of £100.01 per month. 
• The Whole of Life Plan would be written under trust. Setting up the plan under trust means that when the policy pays out, the money does not form part of their estate – and therefore does not increase the amount of inheritance tax payable.
• When both of the couple have died, the proceeds are then paid tax-free, outside their estate, directly to the people they wish to benefit.
• The total potential saving depends on the amount of premiums paid between starting the insurance plan and the end of the plan. However, even if the last remaining partner died at the age of 100, the total saving would be significant. This is because the total amount of premiums paid by then would still be less than half the amount the policy would pay out (£100,000). In fact, one of the couple would need to live to the age of 143 in order to have paid more in premiums than the policy actually paid out!

Note:  The value of your estate could increase or decrease in the future and the rate of inheritance tax and nil rate band are subject to change.

It's important to make sure that the plan you take out matches your requirements.

At Moneysworth, we only arrange Whole of Life Insurance on a guaranteed premium basis.

The benefits are:

• Your premiums are NOT reviewable
• Your premiums are NOT dependent on investment performance.

We believe that this type of plan is reliable and 'does what it says on the tin' – you will never be asked to pay more.

However, not all plans available elsewhere in the market meet these criteria.

Some people with reviewable plans have been faced with a nasty shock at their policy review date, when they have been asked to pay significantly higher premiums to maintain cover levels until the next review date (when they might be asked to pay even more).

Please speak to us if you would like more information about the different options available to you.

The example premiums below are based on non-smoker rates and were sourced on 9th Aug 2019

Individual cover - monthly premium examples:

The above example premiums are for illustration purposes only. Any terms offered would be subject to underwriting.

If you have any health conditions, take a look at the Life Insurance for people with Health Conditions section.