Whole-of-life cover is life insurance which pays out a cash lump sum when you die. You can take out the cover in your own name or with someone else, although the plan will only pay out once. If you opt for a joint life policy, you can choose whether the cash sum is paid out when the first or second person dies.
Premiums can be fixed or variable and you can choose to pay monthly or annually, or opt for a single premium.
One reason people take out whole of life cover is to assist with their estate planning as the cash sum can be used to help your loved ones with an Inheritance Tax (IHT) bill. If you take out a whole of life policy and write it under trust, your beneficiaries will receive the cash sum when the policy pays out, which they can use to help settle the IHT bill.