Whole of life plans

A whole of life plan is designed to do exactly as the name states;  it covers you for the whole of your life. So in reality, the plan will last as long as you do.

A whole of life policy will guarantee that there will always be a pay-out when you pass away, however please note there is a chance that you could end up paying more money to the insurance company than may be received in the pay-out.

Please find below the Proadvice guide to whole of life insurance.  Any profits made on these plans are called bonuses and these are added to the plans at the insurance company’s discretion. 

We are unable to provide you with advice on investment based whole of life plans, however we can introduce you to a specialist.

Over 50’s plans

The over 50’s plans are a type of life insurance policy designed for the people over the age of 50 only. Over 50’s plans are usually only taken up by someone that wishes to avoid being asked for any medical disclosures, due to previous health conditions suffered or may have been declined by another insurance company elsewhere. The over 50’s plans are costly due to the ‘no questions asked’ policy so are usually taken out as a last resort.

Please find some information on some other Financial Products that you might find interesting.

What is an Endowment Life Cover?

Endowment life insurance plans are designed to pay a lump sum in the event of death or when the insurance plan reaches maturity, (comes to the end of its term). Bonuses are added to the policy, usually annually, and they are normally guaranteed. Any profits made on this plan are called bonuses.

The endowment life cover acts as a savings plan as well as life insurance. The endowment life cover plans became very popular a number of years ago as a payment method to cover interest only mortgages. The aim was to provide buyers with a way of paying off their mortgage with a lump sum at the end of the term and it also had a life insurance element built in for the value of the mortgage, if they were to die. By paying an interest only mortgage the repayment method was cheaper.

Endowment plans are linked to the Stock Exchange and many people were promised that there would be enough money, not only to clear their mortgage but also to provide a little extra bonus on top. Many people were reliant on the endowments to clear their mortgage but the policies were never guaranteed to cover or repay the full amount. Being linked to the Stock Exchange the potential pay-outs can increase but equally there is the risk of it going down. If you had a good financial adviser they would have kept you completely updated and informed of the plans targets and predicted shortfalls and looked to move your plan or advise you of other potential options available such as surrendering your policy or dependent on your endowment plan, you could possibly sell it on. 

Millions of people were given the option to complain if they felt they were mis-sold an endowment plan due to the shortfall. The endowment plans paid large commission to Financial Advisers and were sold on the promise of big returns and ended up with people being left massively out of pocket. To be able to claim compensation on the basis of being mis-sold an endowment policy, it has to be proven that you were incorrectly advised that the plan under performed. 

Currently endowment policies are hard to find and have become very expensive. It is often advised to take out a separate savings plan and a separate protection plan, rather than an endowment plan as an ‘all in one’ policy.  

We are unable to provide you with advice on endownment plans, however we can introduce you to a specialist.

What is Critical Illness Cover?

Critical illness insurance is a long term insurance policy designed to pay a lump sum or income on the diagnosis of certain life threatening or debilitating (but not fatal) conditions such as a heart attack, stroke, certain types of cancer, multiple sclerosis and loss of limbs.

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