If your customers are looking to set their dependents and beneficiaries up with long-term financial stability but don’t want to contend with some of the time constraints set on some of the major protection policies, then whole of life insurance could be a quality solution worth discussing with them. Whole of life cover probably isn’t something most advisers are requested to arrange particularly often, nor is it something which their customers will necessarily have any prior knowledge of, so it’s important that advisers have the knowledge to carefully demonstrate what this insurance policy offers and which of their customers are most likely to benefit.
If whole of life insurance is something you find yourself arranging infrequently but recognise its importance as a part of your proposition, make sure you keep reading to find out all about the policy and what it offers to both you and your customers.
For more information on some of the other protection policies you might already be offering, have a read of our articles based on Family Income Benefit, Life Insurance and Income Protection.
What is Whole of Life Insurance?
Whole of life insurance is a rather unique policy type which guarantees a lump sum payout to a customer’s beneficiaries in the event of their death. As the name would suggest, the policy covers a customer across the whole of their life from the period at which they begin paying their premiums. The idea is that the policy holder is then protected for as long as they continue to pay their premiums, which means if they do unfortunately pass away during this period, their family will benefit from a lump sum payout which can contribute towards funeral arrangements, maintaining their household, mortgage repayments etc.
IS A WHOLE OF LIFE POLICY DIFFERENT TO LIFE INSURANCE?
When it comes to insurance policies which pay out after death, most customers may be more familiar with life insurance which is similar to whole of life in many ways but retains one key difference. The difference being that whole of life policies do not have an arranged end date at which the policy is no longer valid. If a life insurance policy holder dies after their policy date has been surpassed then their families receive no payout. With whole of life insurance, as long as the customer continues to pay their premiums they will remain covered for as long as they do. Life insurance policies are arranged with a pre-determined expiration date which sadly means if your customers outlive their policy they will not receive its benefits when they do eventually pass away.
Who Should You Recommend Whole of Life Insurance To?
As an adviser, whole of life cover represents a very exciting prospect simply because of its flexibility and mass appeal. Whole of life insurance can be recommended to everyone, because it quite literally suits everyone. Similar again to a standard life insurance policy, any customer who is looking to set up their loved ones with long-term financial support in the untimely event of their death is worth being spoken to. Only around 35% of the UK population actually holds some kind of life insurance policy despite the fact that six in ten households agree that it would benefit their family. This means, even though a large portion of your customer base doesn’t actually have either life insurance or whole of life insurance it’s likely they could decide to take out a policy if their adviser opens up discussions on the matter.
Why Should You Recommend Whole of Life Insurance?
The role of a protection adviser is one we have delved deep into understanding. You can read further analysis in our recent article here. In accordance with the new Consumer Duty act, it is now more important than ever that you are able to demonstrate clearly that you have presented your customers with all the facts when it comes to the various protection solutions they have to choose from. Therefore, recommending whole of life coverage is an integral part of being a protection adviser.
In a less strict sense, recommending whole of life insurance policies should be something every adviser looks to do because it is a useful coverage option for those looking for some type of financial protection for their beneficiaries after their death. The number of policies which fit this criteria is incredibly small with life insurance and whole of life insurance being basically the only options a customer has available, which means if life insurance isn’t something that appeals to them then a whole of life policy might just satisfy them instead.
As stated previously, the benefit of whole of life insurance over standard life insurance is that there is no set time limit after which the policy is no longer in effect. This means a whole of life policy potentially offers the most comprehensive coverage as it continues to operate from the moment your customers begin paying their premiums until either their death, or until they cancel their policy.
Get in Contact with our Protection Panel
Here at PRIMIS, our list of protection partners for you to work with is as broad as it is flexible. With high street brands and niche names to work with, our advisers have ample choice for how they arrange their customer policies. Below is our full list of partners offering whole of life cover for you to get familiar with, so you know where to go the next time your customer agrees to arranging a policy. For a comprehensive list of all our lenders, including our mortgage partners, visit our dedicated website page by clicking here.
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