What is whole of life insurance?

How does whole of life insurance work?

It’s often easier to understand whole of life insurance by first looking at what it isn’t.

Most life insurance policies are what’s called ‘term’ policies. In these policies, people will pay a certain amount each month so that if they suddenly pass away, their loved ones don’t have to shoulder the costs of paying off mortgages and raising children. They’ll insure themselves for a fixed ‘term’ and if they outlive that term, there won’t be any payout when they pass away. Term policies can also cover critical illness as an optional add-on.

Whole of life insurance works differently. Whole of life insurance typically offers a smaller payout but, providing you meet the terms of your policy, will always pay out. Even if you live to 120.

It’s a policy designed for people who want to help their loved ones when they pass away, perhaps covering the cost of their funeral or clearing any remaining credit card debts. Post Office’s whole of life insurance (our Over 50s cover) has a maximum limit of £10,000, depending on age.

How much does whole of life insurance cost?

Premiums for whole of life insurance can vary depending on age, health, and the level of cover you choose.

At Post Office, we don’t take health into consideration for our Over 50s Life Cover. In fact, we have guaranteed acceptance for UK residents aged 50-80, with premiums based only on your age and the sum assured. There are no medical checks, and lifestyle or occupation don’t affect the price.

Getting a quote is quick and easy. Enter a few details online and a member of our team will give you a call.

How do I set up whole of life cover?

Setting up whole of life cover is a straightforward process from start to finish.

1. Choose your cover amount: Start by deciding how much you want your policy to pay out. This is known as the sum assured.

2. Set up your payment plan: Monthly direct debit payments are the most popular way to pay. Some policies offer fixed premiums that stay the same throughout the policy, while others use reviewable or increasing premiums that may start lower but rise over time.

3. Make regular payments: To make sure your cover stays in place for life, you’ll need to keep paying your premiums.

4. Consider placing the policy in trust: Putting your policy into trust can help ensure the payout goes directly to your loved ones. This can speed up the claims process and may help the payout fall outside your estate for inheritance tax purposes.

5. Ensure your loved ones know about your policy: Let the recipients of your payout know you have a policy and where the documents are kept. This will make it easier for them to claim when the time comes.

6. A claim is made and paid: Once your loved ones contact the insurer and the claim is approved, a lump-sum payment is made.

Getting a whole of life insurance quote

If you’ve decided that a whole of life insurance policy would work for you, you can fill out our online form to get a whole of life insurance quote. Our team will call you shortly afterwards to talk you through your options. If you decide to purchase a policy with us, you’ll also receive a £125 gift card or £200 experience voucher ¹. Your choice.

Here are some of the key features of our Over 50s Cover.

• Guaranteed acceptance for anyone between 50-80
• No exclusions for pre-existing medical conditions
• If you die in an accident during the first year of your cover, your loved ones will receive double your payout immediately
• 24/7 access to a UK-registered GP for you and your family throughout your policy²
• Bereavement support for those you leave behind
• If you’ve paid half of your cover by age 95, your loved ones will receive half of your payout, even if you cancel your policy

¹ Gift card or Experience offer ends 30 April 2027. Minimum premiums and 180-day qualifying period applies. Terms and conditions apply.
²Service separate from the policy contract. It may be withdrawn at any time.