Using a whole of life policy to leave a financial legacy

We all know the UK population is ageing. In fact, the Office for National Statistics (ONS) projects more than 24% of people living in the UK will be aged 65 or older by 2042, a projection that has increased from 18% in 2016.

ONS statistics also show the proportion of the population aged 85 years and over is projected to almost double over the next 25 years.

Planning for the unknown

Planning for your finances in later life isn’t straightforward, as you never know what’s going to happen in the future. Is it a good idea to plan for long-term care costs if you don’t know whether you will ever need to pay for care?

It is always best to prepare for the unexpected. For example, avoiding the need to draw on savings and investments in later life to meet care costs. Which in turn raises another worry that there is less money to leave as a legacy.

whole of life policy

One solution is to take out a Whole of Life policy. This does exactly what it says, by providing life cover that lasts a lifetime. Unlike term assurance which only pays out if you die during a set period of time.

Premiums are normally paid each month (some companies offer single premium plans) and in return you have life cover for a set amount (sum assured). Some policies also allow you to stop paying premiums at a certain age, whilst cover remains in place, which can be useful for later life planning as you know the maximum time you will be paying premiums for.

protecting your legacy

Because you know the whole of life policy will only pay out on death. You can direct the policy proceeds to the people you want to benefit, by putting the policy in a suitable trust.

This also has the advantage of taking the policy proceeds outside your estate for Inheritance Tax purposes, so you leave more of your estate to the people who mean the most.

What will it cost?

Your monthly premiums will depend on factors including; your age, health, the amount of life cover required and who provides the life cover.

Some companies offer non-medical life insurance which can be attractive if you are over 50, but the pay-out will normally be reduced to a refund of premiums, rather than the full sum assured, if you were to die during the first couple of years.

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We work with a variety of Mortgage Brokers which each specialise in different Mortgage Advice areas. When you get in touch, simply select the reason why you’re getting in touch i.e. First time buyer, Bad Credit, Remortgage etc. And we will match you to the Mortgage Broker which Specialises in your circumstances.


All of the Mortgage Brokers we work with are whole of market, fully CeMap qualified, regulated by the FCA, have fair fee policies in place and have consistently great reviews.

Get in touch for a free non-obligatory conversation with one of our Specialist Mortgage Advisors for further information on how they can help you.

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