Whole of Life Insurance

Whole of life insurance is Financial protection which pays a lump sum to protect your family in the event of your death.

Unlike other insurance products it does not have a term and therefore does not expire.

Whole of life insurance can protect the current, or projected future, inheritance tax liability. As a result, when the estate is inherited by the beneficiaries the life insurance pays the IHT liability and therefore, the full estate value is received by the beneficiaries.


Potentially Exempt Transfers (PET)

A Potentially Exempt Transfer is a gift from the your estate to an individual or trust. The value of the gift becomes exempt from Inheritance Tax if the donor survives for seven years following the gift date. If the donor does not survive seven years then the gift value is subject to taper relief as illustrated below.

The inheritance tax liability of a gift can be protected by using multiple term assurance products. Therefore, if the donor does not survive for seven years the Inheritance Tax liability is still protected and the beneficiaries of the estate will still receive the full estate value.

Taper Relief

See how much of the gift value is liable to Inheritance Tax over time


Years 1 to 3 following date of gift


Year 4 following date of gift


Year 5 following date of gift


Year 6 following date of gift


Year 7 following date of gift


7 years passed from date of gift

Inheritance Tax
Inheritance tax (IHT) is charged at 40% and is payable by the inheritors of an estate if the estate value is greater than £325,000 (the nil-rate band).

The estate is calculated as all assets, owned or part-owned, and all gifts made in the previous seven years. Pensions are not included in the estate for IHT. If your estate is greater than £325,000 take a look at the two ways opposite to protect against your inheritance tax liability and then book a call to see how this can work for you.

Get a tailormade quote today

Book your free no obligation consultation with one of our experienced professionals who are on hand to take the time to understand your unique goals and circumstances and can quickly and easily advise a plan to suit your individual needs.

No pushy sales tactics

Just simple, honest, sensible advice - every time.


We will work closely with you to identify and quantify your financial needs, targets, issues, risks and priorities and produce a comprehensive financial planning report that details a range of recommended solutions - all tailormade to your specific desired outcomes.