Guaranteed Whole of Life – Flexible cover to meet changing circumstances
Regular guaranteed Whole of Life cover guarantees a lump sum payment when you die, once all premiums are paid up until death.
But what if your financial circumstances change over time?
Life Changes Option
The Life Changes Option from Royal London allows you to stop premium payments in the future and not lose all of the benefit provided by your policy. If you include the Life Changes Option, and you stop paying premiums after having had your policy for at least 15 years, you will have three choices available to you, illustrated in the example below.
John and Mary take out a Guaranteed Whole of Life plan for €100,000 cover on a ‘joint life second event basis’. This means that the policy will pay out €100,000 once – when both policyholders have died. John is 55 and Mary is 54. Both are non-smokers in good health. They elect to include the Life Changes Option as part of their plan. The monthly premium works out at €139.21 p.m. (incl. of 1% govt. levy). After 16 years both John and Mary are still alive. They have paid in a total of €24,809 into the policy. They have three options:
Protected Cover: Pay no further premiums, and when they both have died at a future date, the policy will pay out €32,967.
Protected Cashback: Pay no further premiums. Immediate cashback of €17,367 available. The policy ceases if this option is chosen.
Continue paying into the policy as before. The Protected Cover and Protected Cashback options remain and will get higher each year as more premiums are paid into the policy.
Points to note
- Example is for illustration purposes only and assumes acceptance at standard rates.
- This is not an offer of cover or recommendation. Cover is subject to completion of a proposal form and medical underwriting by the insurer (Royal London).
- Premiums quoted are correct as at Dec. 2021. Source: Royal London broker centre quote system.