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 does whole of life insurance work?
- 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.
Reasons to take out whole of life insurance
✓ 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.
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.
Cover you can use early if you can't look after yourself due to illnesses like dementia.
Whole of life insurance with Premium Step
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
Gives you a basic annual premium which you can choose to keep the same over time.
Relevant guides and articles
Whole of life insurance
Whole of life insurance covers you for your entire life. It guarantees a payout to your loved ones when you pass away or become terminally ill.
Life insurance for you and your family
Protect your family by taking out a life insurance plan. Choose from a range of award-winning cover options from Vitality today.
Mortgage protection insurance
Mortgage protection is a type of life insurance designed to pay off your mortgage.
Whole of life insurance FAQs
Are whole life insurance policies taxable?
If you write your whole of life insurance plan into a trust, your family won't need to pay inheritance tax on it.
How much does whole of life insurance cost?
- Your age
- If you’re employed in a high-risk job
- If you smoke
Premiums for our whole of life cover start at £8 per month.
Is whole of life insurance worth it?
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.
What is the difference between life insurance and life assurance?
Which is better term or whole life insurance?
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.
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.
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.