Whole of Life Insurance

ralph_2

Why is it near impossible to find on line quotes or target premiums for WoL cover? (Wanted for inheritance tax planning).

dunstonh

some life policies are non regulated and some are regulated.  Some fall into both camps depending on the age and term.

Whole of life is a regulated plan.  Its also not sold very much compared to years ago.   So, many tied advisors have had it removed from their product mix or been left with a cut down version for funeral expenses or a damned expensive one for JLSD. This leaves you with the IFA market.

The cost of running an enhanced portal for quotes, which covers whole of life (amongst other things) is more expensive then running a non-regulated portal.  

I have the enhanced portal on mine and there is only one provider quoting on it at present, yet when i go into one of the IFA quote portals I can get more companies quoted.

bobby64

Can anyone tell me what are the advantages and disadvantages of taking whole of life insurance as compared to Term or Cashback plan insurance???

dunstonh

Can anyone tell me what are the advantages and disadvantages of taking whole of life insurance as compared to Term or Cashback plan insurance???

Depends on what you are looking to protect yourself for.

Not sure what you mean by cashback. Perhaps endowment is what you are referring to or life policies with an investment element.

Term assurance fits a life assurance requirement that is present for a defined term. ie, mortgage, family protection, replacement income.

Whole of life fits a life assurance requirement that is present for your whole life. ie, funeral expenses or estate planning.

ralph_2

Thanks for your helpful reply DD

I have had a 'damned expensive' quote for LoCost JLSD WoL estate planning, but was trying to ascertain how competitive it was. Is it possible to make savings by paying annually? (although not cheaper in the year of 2nd death!)
Is it a nice little earner for the IFA? Thus should I be getting a partial refund of commissions?

I can't find any numbers anywhere. In my case it's for next birthday M54 F53 non smokers.

Are there options / alternatives like unit based instead of insurance based, which, although obviously not fixed in terms of cover, have lower premiums?

With property prices as they are, I'm surprised it isn't sold as much as years ago.

I realise it could prove unnecessary in (hopefully many) years to come should a future government play fair.

dunstonh

I just did a test quote on those ages for 100k using balanced terms. JLSD.  

The premium ranged from 66.84pm to 114.24pm.   That was on 100% commission terms.  The commission is lower than on a term assurance but there is scope to have it dropped back if you speak to the right IFA.   A few providers are not reporting to the portal (happens on Sundays with some as they close their service).

The premiums are a little cheaper if paid annually.  £774 to £1364.  If premiums are paid in advance, then you do get the "overpaid" premium returned to the estate if second death was into the year.

Acording to research there are:

2 low cost
2 non profit
23 unit linked
3 with profits

Although many of those are variations of one plan showing up more than once.

If you give me your sum assured (which you may prefer to do via email or private message) then I will stick that in and see what comes out.