Whole of Life Insurance
Whole of life insurance helps your clients make financial provisions in the event of a terminal illness or death. This flexible cover gives them the knowledge and reassurance that any inheritance tax (IHT) liabilities could be paid, a legacy for their family could be left, and funeral costs could be taken care of.
Whole of Life Insurance and inheritance tax
As whole of life Insurance doesn’t have a term, it can be suitable for dealing with the impact of IHT on the value of your clients’ estates. Plus, your clients can increase their cover in line with their IHT liability before their 90th birthday without having to answer medical questions.
Because the value of an estate can fluctuate over time, we include flexible increase options to ensure that the appropriate amount of cover is in place to pay for IHT.
Your clients can increase their sum assured by up to £250,000 if the value of their estate increases. And if the UK Government changes the legislation leading to an increase in your client’s IHT liability, they can increase their sum assured up to the lower of 100% of that sum assured or £5 million. These changes could include a decrease in the nil rate band or an adjustment to the IHT rate.
Whole of Life Insurance and funding later life care
We understand that your clients may also want to prepare for care in later life. That’s why AIG have a Whole of Life Insurance product specifically designed to meet those needs. Head to our Care Cover with Whole of Life page for more information by clicking on the ‘learn more’ button below.
Writing your client's policy into trust
Your clients are able to write their policies into trust, and we offer both discretionary and bare trust options. Making this legal arrangement ensures that money paid out goes straight to the people they want to benefit from it. It also could allow a quicker death claim payment compared to a policy not in trust and could exempt any pay out from IHT liabilities.
We cannot advise on whether putting any particular plan into a trust would be suitable for your client’s particular circumstances and would recommend that they take professional legal advice. For more information, read our guide to explain how trusts work for insurance policies.
From on-demand consultations with UK based GPs, to Best Doctors - the expert case management service with the world’s top medical specialists, our Smart Health service is a convenient way to connect your customers to tools that help them to manage their health and wellbeing from anywhere in the world, 24/7.
Our Claims Support Fund
We offer a discretionary fund of up to £300 towards services such as travel costs and wigs after cancer treatment - all to help your client and their family cope with a serious illness.
Waiver of Premium
For just a small additional amount, your clients can include Waiver of Premium. With this, we will cover their premiums if they can’t work due to injury or illness. This helps your clients stay insured if they become too ill to work.
Smart Health and Best Doctors are non-contractual benefits which can be withdrawn at any time without notice.
Waiver of Premium is available for clients who purchased their policy when aged 54 and below. This cover ends when the person reaches their 70th birthday.
Literature and support materials
Whole of Life - Key Facts
This document describes what is covered by Whole of Life Insurance, who can buy it and how it works.