Whole of life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured individual, as long as the premiums are paid. Unlike term life insurance, which provides coverage for a specific term, whole of life insurance does not expire as long as premiums are maintained.

In the UK, whole of life insurance serves multiple purposes. It provides a tax-free lump sum payment to beneficiaries upon the policyholder’s death, covering expenses such as funeral costs, debts, and ongoing living expenses to ensure loved ones are financially secure. Whole of life insurance can also be part of estate planning, mitigating inheritance tax liabilities.

Additionally, policies can support charitable causes by naming a charity as the beneficiary, allowing policyholders to make a meaningful contribution while potentially benefiting from tax advantages.