Category: Specific protection products · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-10
Whole of life (WoL) cover is a life assurance contract that pays a lump sum on the death of the insured whenever that occurs (subject to premium continuation). Unlike term assurance, it has no fixed end date — the policy continues for life. WoL cover is used in three principal contexts: inheritance tax mitigation (paying the IHT bill on death of the policyholder); funeral cost provision; and lifelong family financial protection.
Category: Specific protection products Also known as: WoL, whole life assurance Comparison: Permanent (vs term) Related concepts: Increasing whole of life, Trust written whole of life, Inheritance tax cover
WoL is sold either as guaranteed cover (fixed premium, fixed sum assured for life) or as reviewable / unit-linked cover (premiums and benefits may be reviewed periodically to maintain the policy in force). Modern WoL products are predominantly guaranteed term-style permanent products with fixed premiums.
WoL is FCA-regulated as a pure protection contract (where guaranteed) or a long-term insurance contract (where unit-linked or with-profits). Tax: where written in trust, the benefit is paid outside the deceased’s estate for IHT purposes; premiums paid into the trust may use the normal expenditure out of income exemption under s.21 IHTA 1984.
WoL is materially more expensive than term cover because the insurer will eventually pay out (the only question is when). Guaranteed WoL premium for a healthy 50-year-old for £100,000 cover might be £80–£120 per month; for a healthy 65-year-old, £200–£300 per month.
A 60-year-old wishes to provide for an anticipated IHT bill of £200,000 on his eventual death. He takes out a £200,000 guaranteed WoL policy in trust for his children. Premium £160 per month, payable from his pension income within the normal expenditure exemption. On his death (whenever it occurs) the £200,000 is paid free of IHT to the trust, providing immediate liquidity to pay the IHT bill on his estate.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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