What are the benefits of Whole of Life Cover?
If you have retired or paid off your mortgage you may not need as much Life Cover but that doesn’t mean your need for cover ends entirely.
When you die, if your spouse depends on you for income, for example through a pension, they could be faced with having to live on a lot less income. They might also have immediate costs to think about, such as funeral costs, which now average around £2,800. In addition, if your estate is worth more than £325,000 when you die, your beneficiaries might have to pay Inheritance Tax.
Whole of Life Cover can guarantee your loved ones a lump sum when you die.
Whole of Life Cover has no maximum term so it can be used to insure against any Inheritance Tax your family have to pay on your estate. So when you die, your cover would take care of the tax bill, leaving your loved ones with everything you leave behind.
A Joint Life Second Death policy is also available. This means that two people are covered and the lump sum is only paid out after both of them have died.
Even if no Inheritance Tax is due on your estate the lump sum payment can help to pay for funeral costs or for dependant’s longer term living costs. Alternatively it could just be a gift to be left for your family to enjoy.
For general informational purposes only, not intended or to be taken as legal advice. To make sure this is appropriate for you please seek advice and contact us.
