Although it’s important to create plans for your financial future, no one can predict every eventuality.

No one likes to think about the unexpected, but planning ahead could make a real difference for your family. Whole of Life insurance is one way to provide financial support that could help  towards the cost of a funeral or offer a lump sum during a difficult time. Sheffield Mutual offers a Whole of Life Plan that you may wish to explore as part of your long-term planning.

Please Note: the Whole of Life Plan is not a funeral plan.

What Is A Whole Of Life Plan?

A Whole of Life Plan, also known as Whole of Life insurance, is a type of insurance product that pays out upon a member’s death.

However, there are some key differences between a Whole of Life Plan and traditional life insurance.

What’s The Difference Between A Whole Of Life Plan And Life Insurance?

Generally, traditional life insurance policies offer a set insurance period (e.g., 10, 20, or 30 years), set premiums during that period, and agree to pay a certain amount if you die within the term.

Whole of Life insurance, on the other hand, will provide cover for your entire lifetime, as long as all premiums are paid in accordance with the policy rules. 

Are There Any Restrictions On A Whole Of Life Plan?

Another difference between traditional life insurance and Whole of Life insurance is how contributions and payments work.

At Sheffield Mutual, our Whole of Life Plan allows our members to contribute between £5 and £50 a month, depending on their needs.

When your policy is collected by your estate, the plan will pay out your ‘Sum Assured’, or the amount that was agreed at the beginning of your insurance term. For our Whole of Life Plan, this limit is £50,000.

How Long Do I Need To Keep My Whole Of Life Plan?

As you might have guessed by the name, Whole of Life Insurance is designed to last your entire lifetime.

The minimum term for which you can pay premiums is 10 years. However, to be guaranteed the full sum assured agreed at the beginning of your plan, you must continue to pay your premiums for the remainder of your life, or at least until your 90th birthday. There is, therefore, a risk that the sum assured will be less than the value of the premiums paid.

Who Receives The Lump Sum After I Die?

With our Whole of Life Plan, our members can nominate who they want to receive their sum assured in the event of their death, provided the beneficiary is a member of their immediate family (spouse, civil partner, parent, child, grandchild, sibling, niece or nephew). The nomination form for this process will be sent out at the beginning of your plan.

There are also a few points to take note of when choosing a nomination.

The nomination will be invalidated if the person nominated gets married or dies. When taking the plan out, our members can also choose to put some of the lump sum toward funeral expenses directly, and they are free to choose their preferred funeral director.

Finally, if our member chooses not to fill out our nomination form, this lump sum will form part of their estate upon their death.

Please Note: Any payout above £5,000 value will require us to see our member’s death certificate, probate, or letter of administration, as specified in the plan.

Can I Have More Than One Whole Of Life Plan?

Our members are free to have more than one Whole of Life Plan.

However, the monthly contributions to all plans must remain at £50 or below, and the maximum payout of all plans cannot exceed £50,000.

Is The Plan Guaranteed To Pay My Lump Sum?

The Whole of Life Plan is guaranteed to pay out your lump sum in most circumstances.

However, in the unfortunate event of your death within the first 12 months of the plan, your sum assured will not be paid unless your death is the result of a fatal accident.

How Can I Apply For A Whole Of Life Plan?

At Sheffield Mutual, our members can apply for our Whole of Life Plan in three ways.

Our members can apply online on their own if they feel comfortable doing so.

Alternatively, members can download an application pack or have an application sent by post, which they can then complete and return to us.

Finally, if our members aren’t comfortable going online or filling in forms by hand, they can also contact us on 01226 741 000, and a member of our friendly and helpful team will be happy to help fill out an application.

Before applying for our Whole of Life insurance, please read our Key Information Document carefully.

Discover A New Insurance Option At Sheffield Mutual

At Sheffield Mutual, we are always looking for new ways to help our members plan for the future.

Our Whole of Life Plan allows members to choose a premium that suits them, nominate the beneficiaries of their plan, and even use their lump sum to pay funeral costs directly.

If you have more questions about our Whole of Life Plan or are interested in becoming a member of Sheffield Mutual, contact us, and one of our team members will be happy to guide you through the process.

Alternatively, if you are interested in becoming a member of Sheffield Mutual but aren’t sure whether the Whole of Life Plan is right for you, consider using our helpful product selector to find the product that best suits your needs.

We offer a range of financial products, including our Sustainable Investment ISAs, Tax-Exempt Savings Plan, and Investment Junior ISA. Browse our products carefully to find the plan that is right for you.

This article provides generic information and the writer's opinions and should not be relied upon for investment decisions. Sheffield Mutual has provided no advice. If you doubt whether a savings or investment plan suits you, consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouchedfor.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand.