Military whole of life insurance
While ‘term’ life insurance policies are valid for a pre-set period (often 25 years), a military whole of life insurance policy lasts as long as you do – assuming you maintain agreed payments. When the inevitable happens, providing the policy is still in force, it will pay out a death benefit to your elected beneficiaries. The main advantage of a military whole of life insurance policy is that they can be useful in managing tax – in particular inheritance tax.
Although whole of life insurance policies can provide a surrender value, they should not be used for investment purposes due to the deductions made for the death benefit.
Key facts about whole of life insurance
With a military whole of life insurance policy, payment of the benefit is guaranteed. This means whole of life policies tend to be more expensive than other term insurance policies for the same level of cover (depending on what age you are when you start the plan). Each premium is made up of a mortality element and a savings element. Upon death, a fixed sum is paid to the beneficiary along with the balance of the savings account. The performance of the underlying investment fund for whole of life plans is important, as the cost of future premiums depends on fund performance.
Before taking out any form of finance or insurance product, you should seek professional advice. At Forces Advice, we understand the needs of service personnel and their families. Our comprehensive knowledge of the insurance market allows us to give you personal recommendations.
Why choose Forces Advice for your whole of life insurance quotes?
Forces Advice was founded and is run by Martyn Barberry and John Sykes, who both enjoyed careers in the armed forces before qualifying and working in the finance and insurance sector. Combining their understanding of the insurance needs of HM Armed Forces servicemen and women with an in-depth professional knowledge of insurance products, they established Forces Advice Limited.
We offer a range of products from carefully selected insurers.
As a member of SIIAP, we endeavour put the serviceman and their family first with quality cover that fits your particular needs. You can check our details on the Financial Services Register. Our firm reference Number is 622403