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Whole of life insurance

Also called whole of life assurance, pays out when you pass away.
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What is whole of life insurance?

Whole of life insurance is a life insurance policy that guarantees your family get a payout when you die. It's cover for your peace of mind that your loved ones will have financial security no matter what.

Unlike term life insurance, which has a policy end date, whole of life insurance only ends when you die. This is why the payout is guaranteed and the cover is also called life assurance.

 
How much whole of life insurance
do I need?

Call us on 0161 216 7595 to speak to an adviser, oget a quote.

How does whole of life insurance work? 

Once you’ve taken out a plan:
  • You’ll pay monthly or annual premiums. With our whole of life plan options you can pay for your cover in the best way that suits you. You can also choose your future premium calculations
  • The payout amount your dependents will receive stays the same throughout your life. For example, your cover amount is £200,000 when you take out your policy. So, when you die, your family will receive £200,000.
Family at home

Reasons to take out whole of life insurance

✓ Peace of mind that your loved ones will get a guaranteed payout when you die 
✓ Your plan’s cash value can be a source of tax-free funds during your lifetime
✓ Help your family from overpaying on inheritance tax
Currently, if your estate is over £325,000, inheritance tax is 40% of its value1. If you take out whole of life cover and write your policy into a trust, you won’t need to pay inheritance tax on it.
 
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Your whole of life options

We have three options of cover for you to choose from, so you can decide how your future premiums change.

  • LifestyleCare Cover

    older person with walking stick

    Cover you can use early if you can't look after yourself due to illnesses like dementia.

  • Whole of life insurance with Premium Step

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    Get an upfront discount of up to 40%. Certainty of your future premiums with an annual 2.5% fixed premium change.

  • Traditional whole of life insurance

    Financial care icon

    Gives you a basic annual premium which you can choose to keep the same over time. 

Why choose Vitality’s whole of life insurance? 

✓ Get up to 40% off your first year’s premiums with Optimiser
✓ Last year, we paid out 99.5% of life insurance claims2
✓ 5-star Defaqto rated life insurance cover
✓ Access to Vitality partner discounts and rewards.
 
Trustpilot and Defaqto rated whole of life cover
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All it takes is a couple of minutes.

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How much cover do I need?

Call us on 0161 974 2517 to speak to an adviser.

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Whole of life insurance FAQs

When your family receive the payout, it's not subject to capital gains tax or income tax. Your family might need to pay inheritance tax on it though, which is 40% off assets over £325,0001.

If you write your whole of life insurance plan into a trust, your family won't need to pay inheritance tax on it.
Your premiums are based on lots of things like:
  • Your age
  • Height
  • Weight
  • Health
  • If you’re employed in a high-risk job
  • If you smoke
Whole of life insurance is usually more expensive that term life insurance. This is because a payout to your dependents is guaranteed. 

Premiums for our whole of life cover start at £8 per month.
It depends on where you are in life. Most people take out some form of life insurance when they have a baby, get married or buy a house.

For many people, life insurance is an excellent way to protect the things that mean the most to you. It's peace of mind that your family’s financial future is secure, no matter what happens.

When it comes to our life insurance, we don’t just help you when things go wrong. We also help you live life well, by rewarding you for getting active and staying healthy.
Life insurance, or term life insurance covers the policyholder for a specific term. Your dependents only get a payout if you die within the plan's term. There's also life insurance options that help you during your lifetime like:
Life assurance or whole of life insurance covers you for your whole life. Not matter when you die your family will receive a guaranteed payout.
There is no rule of thumb when it comes to choosing whole of life insurance or term life insurance. What your reasons are for taking out life insurance is unique person to person.

Term life insurance is generally cheaper but has a fixed term. So if you die outside of the plan's period your family won't get a payout. You can get types of term life insurance that are there to help during your life, too. Such as income protection insurance and mortgage protection insurance.

Whole of life insurance is more for your loved ones when you die rather than during your lifetime. It's guaranteed financial security for your family when you die. 
 
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Related personal protection options 

We offer a range of award-winning insurance plans to protect you and your future. 

  • Serious Illness Cover

    Pays a lump sum if you're diagnosed with one of the conditions we cover. You can add Serious Illness Cover to your life insurance plan or as a standalone product.

  • Income protection insurance

    Pays you a monthly income if you get sick or injured and can't work.

  • Term life insurance

    Unlike whole of life insurance, term life insurance is for a fixed period of time. If you become terminally ill or die during the policy term, you or you family receive a payout. Choose a policy term from five to 70 years.

  • Mortgage protection insurance

    Helps you to pay your mortgage if you get ill and can't work.

Sources

1
gov.co.uk - Inheritance Tax
2 Claims and benefits report June 2020