Why Whole of Life should no longer be ignored
Whole of Life might not get the same airtime as its more popular sibling Term Life, but advisers should still give it the attention it deserves.
For advisers discussing life insurance with clients, cost can be a barrier - at the best of times - even if that plan is guaranteed to last their entire lifetime. Gone are the days when life insurance was envisioned purely as a form of savings paid as a death benefit. Propositions have evolved to deliver value to clients while they are still alive, meaning that protection advice has needed to become far less transactional as a result.But, with people living longer, Whole of Life still has an important role to play as part of protection recommendations. While sales were much higher in the '90s and early noughties, its demand has remained steady in recent years, according to industry data. In 2020, 11,000 advised underwritten Whole of Life plans were sold, down 66% from the high watermark of 33,000 in 2015. However, the number of guaranteed acceptance plans purchased in 2020 was up 16% on 20151.
While it might be more common for advisers to turn to a combination of Term Life, Serious Illness Cover and/or Income Protection when looking at solutions for clients - especially at a time when budgets are constrained - there are a number of reasons why Whole of Life should not be overlooked.
1. The plan is guaranteed to pay out
2. Funerals are becoming more expensive
3. Equity release is becoming more popular
4. IHT receipts are on the rise
5. Social care funding is still a huge problem in the UK
Find out more about how you can support your clients with Whole of Life Cover.
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1 Swiss Re Term & Health Watch 2021
2. Sun Life research 2021
3. This is Money, 27 January 2022
4. According to Equity Release Council, Mortgage Strategy, January 2022
5. IHT Statistics: Commentary, HM Revenue & Customers, July 2021
6. Alzheimer's Society, August 2021