Suitable for lifetime protection of dependants

Married couple in their 40's with 2 children at school/university

Married couple in their 50's? (Perhaps for estate protection)

Elderly couple past state pension age? (Perhaps for estate protection or for burial costs?)

As its name implies this plan has no fixed term, although the payment of premiums may be limited to a particular term or age. The policy pays out on death only although it does have a value if cancelled after the first 2 years.

The whole of life plan comes in a variety of forms, the plan can be set up on a non profit basis where the death benefit is fixed from the outset, or on a with profit basis with the value payable on death being increased by the bonuses earned. As the plan acquires a surrender value and the cover is permanent the premiums will be higher than for term assurance.

Another type of whole life plan is the investment bond. This is a single premium non qualifying whole life policy.