Whole of life insurance is exactly what it sounds like: a life insurance policy that covers you for your entire lifetime, rather than for a fixed period. When you die, the policy pays out a lump sum to your chosen beneficiaries, regardless of when that happens.

How it differs from term life insurance

Term life insurance covers you for a set period, such as 25 years to match your mortgage term. If you die within that period, it pays out. If you are still alive at the end of the term, the cover simply ends.

Whole of life insurance has no end date. As long as you keep up your premiums, you are guaranteed a payout at some point. This makes it more expensive than term cover, but it also means your loved ones will definitely receive something, rather than the cover potentially expiring before you die.

Who might benefit from whole of life insurance?

It tends to suit people who want to cover a risk with no natural end date, rather than a fixed term liability such as a mortgage. Common reasons people choose it include wanting to cover funeral costs regardless of when they occur, leaving an inheritance for family members, covering potential inheritance tax liabilities, or providing ongoing financial support for a dependant who will need it for life, such as a child with long-term care needs.

For those who simply want to cover a mortgage or provide for children during their younger years, term life insurance is usually more cost-effective. The choice comes down to what you are trying to achieve.

How much cover do you need?

This depends entirely on your personal circumstances. A single person with no dependants might only need enough to cover funeral costs and clear any outstanding debts. Someone with a partner, children, a mortgage, and a desire to leave an inheritance will need significantly more. It is worth thinking carefully about what you want the payout to achieve and working backwards from there.

It is also worth checking what death-in-service cover your employer provides, if any. Many employers offer a payout of three to four times your salary on death, which can form part of the overall picture.

 

 

Can you hold more than one policy?

Yes, you can hold multiple whole of life policies if your needs change over time. For example, if your family grows or your financial commitments increase, you can take out additional policies rather than replacing an existing one, which could be costly if your health has changed.

How are premiums paid?

You can pay either monthly premiums or a lump sum upfront. Most people opt for monthly payments, which spread the cost over time.

How does a claim work?

When a policyholder dies, the beneficiary contacts the insurer to notify them of the death. They will need the policy number, details about themselves and their relationship to the policyholder, and the policyholder’s doctor’s details. A claim form is then completed and returned, along with a death certificate. Once all documentation is in order, the payout is made.

A financial adviser can help you work out whether whole of life or term insurance, or a combination of both, is most appropriate for your circumstances.

The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.

Approved by In Partnership FRN 192638 June 2026