Whole of life insurance policy to cover IHT ?

thestens

Our financial advisor is recommending a whole of life policy to cover our potential IHT bill of about £120 000. This is to pay out on 2nd death of me or my husband. We are 65 and the cost will be approx £200 a month, she says.
What do others think? Is this a good plan? I am a bit concerned about premiums rising as we get older and although we are both in good health at the moment, what happens if one or both of us develop illnesses - will the premiums leap up then? I know, I need to ask her these questions too!

dunstonh

Our financial advisor is recommending a whole of life policy to cover our potential IHT bill of about £120 000. This is to pay out on 2nd death of me or my husband. We are 65 and the cost will be approx £200 a month, she says.

The is a common recommendation to cover such a thing.

What do others think? Is this a good plan?

Generically, the product fits the expectation.

I am a bit concerned about premiums rising as we get older and although we are both in good health at the moment, what happens if one or both of us develop illnesses - will the premiums leap up then?

If the plan has guaranteed premiums then they cant rise. If the plan has reviewable premiums, then a rise is a possibility. So, if it is a concern, then go with guaranteed premiums. I nearly always select guaranteed, non-investment linked premiums.

thestens

Thank you.