Inheritance Tax Protection
There is also a plan named a Whole of Life Policy. This pays out a guaranteed lump-sum, free from income tax when a person dies and is not term related. As you may imagine this guarantee of payment means that it is a more expensive form of cover. However it can be cost-effective to provide cover for a potential inheritance tax bill on the death of the insured, or on the second death of an insured couple – very often when inheritance tax bites into the family estate.
*These types of plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.