How did whole of life fare in 2015?
16th February, 2016
According to a 2015 Swiss Re report, the whole of life market has seen a general resurgence of sales over the last 12 months, compared to its cousin; term assurance life cover.
Although held under one banner, permanent life assurance is traditionally split into two: fully medically underwritten plans with higher pay-outs (whole of life), and the guaranteed acceptance, or over 50s plan. The latter is traditionally used by those looking to leave some money to loved ones to take care of outstanding bills and funeral costs when they have pre-existing conditions..
Guaranteed acceptance plans did see a slight drop in sales in 2015 (1.2%) compared with the previous year, but the number of new, non-linked whole of life policies increased by an impressive 13.8%. The figures also revealed that the average sum assured had increased, rising from £96,550 in 2013 to £102,885 for new-non linked whole of life policies in 2015.
Protection Director at Aegon Dougy Grant described the current whole of life market as “vibrant and growing”. Aegon launched their whole of life policy in 2014, announcing that it would be placed in a discretionary trust at application; a real innovation that reduced the risk of the policy not been placed in trust at a later stage. “We’ve had a lot of success with wealth advisers who are having that conversation with clients”, Grant said, “they need to protect a client’s wealth from an inheritance tax perspective”.
So why has the market seen an increase in the last 12 months? Inheritance Tax changes announced in 2015, as well as innovations both digitally and to increase awareness among both protection advisers and the public has made an impact. But Douby Grant admitted that more needed to be done: “We believe that customer awareness can start in a conversation between an adviser and client”.
If you would like to find out more about whole of life policies and which might be suitable for you and your circumstances, you can contact us directly at Compare Life Quotes or have a look at our quotes page.