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Whole of life insurance

Life can be unpredictable but whole of life insurance can provide you with peace of mind that your family are protected financially, regardless of when you die.

We don’t currently offer whole of life insurance. But we can offer information on this type of cover and offer some alternatives.

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Rhydian Jones - Confused.com Commercial Director

Written by Tom Vaughan Home & lifestyle insurance expert 6 min read | Published 22/07/2025

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What is whole of life insurance?

Whole of life insurance is a policy designed to give you lifelong cover and a guaranteed pay out for your loved ones when you die.

They can use the money however they like. For example:

To pay off a mortgage or other debts
To cover funeral costs
To pay for living costs
To use as a gift from you

This is in contrast to term life insurance that covers you for a set period and pays out if you die during this time.

Whole of life insurance can also be known as life assurance or permanent life insurance.

Whole of life insurance policy key points:

Cover lasts for life and your insurer pays out regardless of how far into the policy you die.
Your cover amount stays the same throughout the policy lifetime and is paid out as a lump sum.
Pay out is guaranteed so it's classed as a form of ‘life assurance’.
According to the ABI, 99.98% of claims for whole of life insurance were paid out in 2023 (source).
Often only available through a financial advisor or broker who can help determine if it’s right for your circumstances. Not available through Confused.com.

How does a whole of life insurance policy work?

Simply put, it covers you for life and pays out when you die.

You’ll apply for a policy, where you’ll discuss your needs to work out how much cover you should buy.

You’ll also give details about your circumstances so that insurers can work out your eligibility and the price you’ll pay for your policy.

Once you’ve taken out a policy, you’ll need to keep up with your monthly payments (known as premiums). You’ll need to pay these until you pass away to keep your cover valid.

When you die, no matter how far into your policy this is, your loved ones can make a claim on your policy and receive a lump sum pay out.

There are also other forms of whole of life insurance, known as ‘investment linked’ whole of life insurance, where your premiums are invested during the lifetime of the policy. However, this policy type isn’t as common.

Is whole of life insurance guaranteed to pay out?

Yes, whole of life insurance guarantees a pay out to your loved ones when you die.

A pay out is guaranteed as long as:

All the information you gave on your application is correct – if you gave false information or didn't let insurers know of something important this can invalidate your policy. This means you might not get a pay out. Always be open and honest during the application process and declare things like your smoking status or pre-existing medical conditions.
You haven’t missed any payments for your policy – if you consistently miss your monthly premium payments, this will invalidate your policy and you won't get a pay out when you die. If you're struggling with your payments, contact your insurer as they may be able to help.
Your cause of death is covered within your policy terms and conditions – most policies come with a suicide clause which means you won't get a pay out if you die by suicide within the first 12 months of your policy. Depending on the insurer and your personal circumstances there could also be other clauses written into your policy. For example, if you have a dangerous hobby, you might not be able to claim if you die because of your hobby.

How much whole of life cover do I need?

This depends on what you want to cover.

As you’ll be covered for the rest of your life, it’s common for whole of life insurance to be used for:

Covering the cost of your funeral
Giving an inheritance to your loved ones
Covering inheritance tax bills on your estate

You might also want to consider these things when working out how much life insurance to buy:

How much of your mortgage do you have left to pay off?
Do you have any other debts?
Will your family struggle without your income if you die?

It can be helpful to use a life insurance calculator to work out your financial commitments and get an instant cover estimate.

What’s the best whole of life insurance?

The best depends on your personal circumstances and what you’re looking for in a policy.

While all whole of life insurance policies offer life cover, the specific features of each policy can vary between different insurers.

Some policies may include terminal illness cover, while others don't. Some may allow you to take out a joint policy while others don't.

Some insurers may include certain additional benefits as standard, whereas others may allow you to add them for an extra cost.

Comparing all the options available to you can help you find the right policy for your needs.

How much whole of life cover do I need?

The price you pay for whole of life insurance will depend on your personal circumstances, such as:

Your age
Your health and medical history
Your family’s medical history
Your smoking status
Your occupation
Your lifestyle
How much cover you want

In general, whole of life insurance premiums are more expensive than other policy types as cover lasts for life and a pay out is guaranteed.

It's important to be aware that once you've bought a whole of life insurance policy, you'll need to pay monthly premiums for the rest of your life.

Should I get whole of life insurance or term life insurance?

Which option you should choose will depend on your budget and what you want to protect.

If you're looking for a life cover to protect a specific debt, such as a mortgage, you'll likely only need cover during this time.

In this instance, a level term or decreasing term policy could be more suitable and affordable.

If you want life insurance for funeral or inheritance tax planning, whole of life insurance can help you with this.

Whole of life insurance is often only available through a financial advisor or broker who can give advice.

This means that you can talk through your needs with an expert to work out if this type of cover is right for you.

Is a whole of life insurance policy worth it?

It’s quite an investment to pay into a policy for the rest of your life, so naturally you’ll want to know if whole of life insurance is really worth it before you buy a policy.

The main benefits of whole of life insurance are:

Lifelong cover - with a whole of life policy, you don't have to worry about outliving your policy term and your cover expiring. Once you buy a policy, it's in place for life.
Guaranteed pay out - your loved ones will receive a lump sum payment regardless of when you die during your policy.
Help with inheritance tax - if you leave your estate to someone other than a spouse or civil partner, they'll have to pay inheritance tax. With current IHT rules, this applies if your estate is over the threshold of £325,000. If you write your policy in trust, the pay out won't form part of your estate. This means the pay out can be used to cover any inheritance tax bills.
Peace of mind - ultimately, having lifelong cover with a guaranteed pay out helps to give you peace of mind that your nearest and dearest are taken care of if you die.

The disadvantages of whole of life insurance are:

Most expensive form of cover - as you're covered for life, whole of life premiums tend to be more expensive than any other form of life insurance.
You’ll need to pay premiums for your whole life - to make sure your loved ones receive a pay out, you'll need to make sure you keep up with your monthly premium payments.
Not all insurers offer whole of life insurance - whole of life insurance is available through a limited amount of insurers.

What our life insurance expert says

"Although we don’t offer whole of life insurance, it might still be the right option for you if it provides peace of mind and fits your budget and needs. We do offer a range of similar alternatives that could be worth exploring."

"Given how important this decision is, be sure to shop around, compare all your options, and choose the right level of cover for you and your family."

Tom Vaughan Home & lifestyle insurance expert

What other types of life insurance can I get?

Balanced cover

This is the standard whole life policy. You pay a fixed amount every month, regardless of your age or state of health. This could make budgeting easier.

Mortgage life insurance

A mortgage life insurance policy is designed to pay off your mortgage when you die so your loved ones can stay in the family home.

Over-50s life insurance

An over 50s plan guarantees acceptance to UK residents aged 50 - 85 with no medical questions or exam.

Learn more about over-50s life cover