Personal Insurance from Newcastle Independent Financial Advisers

Amethyst IFA

83 Howard Street
North Shields
Tyne and Wear  NE30 1AF

0191 257 6704 0191 257 6256 Mon - Thurs 9am to 5pm
Friday - 9am to 4:30pm

Whole of Life Policies

A whole of life policy is another policy which does exactly as it says. It covers you for the whole of your life. When the inevitable happens, providing the policy is still in force, it will pay out a death benefit. Although they can provide a surrender value, they should not be used for investment purposes due to the deductions made for the death benefit.

As payment of the benefit is inevitable Whole of Life policies tend to be more expensive than Term Assurance policies for the same level of cover (it depends on what age you are when you start the plan). Each premium is made up of a mortality element and a savings element. The savings element could build up an investment fund to pay out the benefit on death. The performance of the underlying investment fund for Whole of Life Plans is important, as the cost of future premiums depends on fund performance.

Past performance is no guide to future returns. The value of investments can fall as well as rise.

These policies come in various forms:

  • Non-profit whole life policies - A level premium payable throughout life. It pays a fixed cash sum at the time of death.
  • With profit whole life policies - Same as non-profit policies but the amount paid on death is the sum assured plus whatever profits have been allocated.
  • Low cost whole life policies - These have a guaranteed level of cover that the amount payable on death is the greater of the basic sum plus bonuses or the guaranteed death sum assured.

If you are worried about investment risk and increasing premiums, there are Whole of Life policies available which do not rely on fund performance, however, these do not acquire a surrender value.

The Value of investments and the income from them may go down. You may not get back the original amount invested.

For protection insurance we offer products from a limited panel of providers.

Please refer to the policy document before taking out a policy to check any limitations.

Insurance which is based on an assessment of health of the applicant is unlikely to cover the applicant for previous or existing medical conditions and that the customer should refer to policy documentation and seek advice in order to understand what the policy does and does not cover before making an application.

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amethyst IFA Paul Richardson Alan Dennett Malcolm Butters Liz MacBride Keith Wilkinson Stephen Anderson Karen Chapman