Whole of Life Insurance

A guaranteed sum assured payable on the death of the life assured. The cover remains in place provided the required premiums are paid until the life assured dies. Premiums usually remain level throughout however it is possible to pay a higher premium with the aim of stopping premiums at a predetermined age, perhaps at retirement thereby maintaining the life cover but without the need to continue paying premiums.

None Profit Policy

This policy would pay out the guaranteed sum assured on death whenever death occurred.

With Profit Policy

This policy would pay a minimum guaranteed sum assured on death plus receive bonuses as a result of part of the premium paid being invested in the life companies “With Profit” fund. The premiums paid for this type of policy would be higher than the premiums payable to a “Non Profit” policy.

When either policy has been in force for a while an encashment value will start to build up. The longer the policy remains in force the better the value will be. It is always good advice to maintain any investment-linked policy in force until the end of the stipulated investment term, thereby avoiding early encashment penalties.

Unit Linked Policy

This policy would pay a guaranteed minimum sum assured following the death of the lifeassured. Often used as an efficient as well as organised means of developing medium to long-term savings over a ten-year plus term. Part of the premium paid would be invested into unit-linked funds (stock market related) run by the life company or external fund managers. An investment term can be selected. This type of “Whole of Life” policy is very flexible in that in most cases higher or varied premiums can be paid plus additional benefits can be added such as Critical Illness Cover protection. Like ” With Profit” policies the longer the policy is funded and kept in force the greater the proceeds will be. Maintaining the policy until the end of the selected investment term will allow the full value of the investment proceeds to be paid out without early encashment penalties being applied.