Guaranteed Whole of Life Insurance

You'll want to understand all the facts about Guaranteed Whole of Life Insurance before you take out your plan. So, we've put together some easy-to-follow frequently asked life insurance questions and answers:

What is life insurance?

It's a way of helping to make sure that your family and loved ones are financially secure after your death.

A life insurance plan pays out a cash lump sum when the person(s) insured dies. The lump sum can be used to provide financial support to your family and loved ones, who might use it to help pay the mortgage, bills and other living expenses, or any inheritance tax liability.

Having the right level of life insurance cover in place gives you peace of mind and your family and loved ones a financial safety net. There are different types of life insurance, so it's important to pick the right type for you.

What is Guaranteed Whole of Life Insurance?

It's a life insurance plan where the cover lasts for the duration of your life, rather than for a fixed term. It's the right sort of life insurance to choose if you want to provide a guaranteed amount of money for your family and loved ones whenever you die.

Who can apply for Guaranteed Whole of Life Insurance?

You can apply for Guaranteed Whole of Life Insurance if you're a UK resident aged between 16 and 89. A UK resident is defined as someone who's permanently resident in the United Kingdom of Great Britain and Northern Ireland (excluding the Channel Islands and the Isle of Man).

How much life cover should you get?

That depends on your personal circumstances. You'll want to take into account factors like:

• How much any dependants you have would need to support themselves without your income at any time in the future
• Any potential inheritance tax liability.

When can you start your cover?

We can start your cover as soon as your application is approved. Find out more about how to apply.

Does the plan have any cash-in value?

If you're paying premiums for the maximum premium term, the plan doesn't have a cash-in value at any time. If you've chosen to pay for a limited premium term, there may be a cash-in value, but this will be less than you've paid in.

If you've paid with a single premium, there may also be a cash-in value, which would be a proportion of the single premium.

Can you buy joint life cover?

Yes. You can have joint life cover that pays out on a first or second death basis. Your financial adviser will help you decide which is best for you.

How can you pay?

You can choose to pay for your cover either in one single payment or by regular monthly or annual premiums. If you pay regular premiums, you may be able to choose either a maximum term or a reduced (limited) term, depending on your age when you start the plan.

For a limited term, payments will be made for a whole number of years, from 10 years up to the maximum. For a maximum term, payments will be made until the plan anniversary prior to your 90th birthday, or for 10 years if you're aged between 80 and 89.

How do your family and loved ones make a claim?

At Aviva, we aim to make the whole claims process as smooth as possible. When you die, the person responsible for your affairs should call or write to us as soon as possible and we'll let them know what we need to sort out the claim.

Can you choose who gets the money if you die?

Yes. By putting your policy under trust, any life cover pay-out could go to the people you choose, quicker and with less fuss. Under current tax rules, it could also help protect the pay-out from inheritance tax.

Are pay-outs taxed?

Pay-outs for life claims are usually free of income tax and capital gains tax, but in some circumstances inheritance tax may be payable. You can normally help avoid this by putting your policy in trust. Bear in mind that the law relating to tax may change in the future.

Can you cancel the plan at any time?

Yes, just contact us if you want to cancel it. Once you cancel your direct debit payments, your cover will stop 30 days after the last premium was due and you'll no longer be insured.

Will your payments change?

For a Guaranteed Whole of Life Plan with Aviva the answer is ‘No - unless you choose to increase them'. We guarantee that your payments will stay the same for the duration of your plan.

However, you can choose to take the yearly increase option where your premiums and cover will increase by 5% a year to help against the effects of inflation.

In addition, our extra cover option allows you to extend your cover during the plan, for an additional premium. The extra cover option is not included on all plans and can only be used in certain circumstances - ie where a change in tax rules or receipt of a gift would increase inheritance tax liability.

The increase must be within certain limits - a maximum of £500,000 or 50% of the original sum insured, whichever is the lower, and a minimum of £1,000.

Bear in mind that the plan conditions may apply and extending your cover will increase your premium.

It's easy to apply for life insurance

Just call one of our advisers for a quote. They'll be able to answer all your questions and help with your application.

Call us on 0800 092 7751* to get a quote.

We can only advise on our own products.

* Lines are open Monday to Friday 8am - 9pm, Saturday 9am - 5pm and Sunday 10am - 4pm. Calls may be recorded and/or monitored for our joint protection.

WC05077 04/2012