In short
Whole of life insurance is designed to pay out whenever you die rather than only during a fixed term, provided premiums are maintained.
Unlike term cover, which runs for a set number of years, whole of life insurance is intended to remain in force for the rest of your life and pay a lump sum on death, as long as premiums continue to be paid.
Because the insurer expects to pay a claim at some point, whole of life cover is usually more expensive than term cover. It is often used for estate planning, helping to meet an inheritance tax bill, or providing a guaranteed legacy, rather than for temporary needs like a mortgage.
Some whole of life policies have reviewable premiums or an investment element, which means the cost can change over time. It is worth understanding exactly how a particular plan is structured, and whether the premiums are guaranteed, before committing to lifelong cover.
Need help applying this?
Talk through your options with an advisor
Every policy depends on your health, budget, income, family, and cover goals. A short callback can help you compare suitable options.