Whole of Life Insurance Ireland

Whole of life insurance runs until you die and guarantees a payout, as long as you keep paying premiums. It is far more expensive than term life insurance, so it only makes sense in specific situations such as funeral costs, leaving a guaranteed lump sum, or funding inheritance tax.

Whole of life insurance is not for everyone.

In fact, for most people who are still working, paying a mortgage and raising children, term life insurance gives far better value.

That said, there are situations where whole of life is exactly the right tool. The key is understanding when it fits and when it doesn’t.

Let’s go through it properly.

What Is Whole of Life Insurance?

Whole of life insurance simply means the policy stays in force until you die.

There is no fixed end date. No 20 or 30 year term. It pays out whenever that day comes, provided you have kept the premiums going.

In practical terms it means:

• The policy does not expire at retirement
• The payout is guaranteed
• The cost is higher because the insurer knows it will eventually have to pay

That guarantee is the whole point.

It is also the reason it costs more.

Guaranteed vs Reviewable Whole of Life

This is where people can get caught out, especially with older policies.

Guaranteed Whole of Life

This is the only version we recommend arranging today.

Your premium is fixed from the start and does not get reviewed later. You know what you are paying, and you know what your family will receive, so there are no price hikes down the line.

It’s simple and transparent, which is exactly how it should be.

Reviewable Whole of Life

Some older plans allow the insurer to review premiums at set intervals, often every ten years and then more frequently at older ages.

At those review points, the premium can increase, sometimes significantly.

Some people are comfortable absorbing increases. Others find the cost becomes too much later in life, which defeats the purpose of having cover that is meant to last forever.

If you already have a reviewable plan, it is worth reviewing it carefully before making any decisions. Cancelling without understanding your options can create problems.

When Does Whole of Life Make Sense?

Whole of life tends to work best when there is a clear, specific objective.

Covering funeral costs

A smaller guaranteed lump sum can make sure your family is not left dealing with funeral expenses at a difficult time.

Leaving a guaranteed legacy

Some clients simply want certainty that a fixed amount, say €25,000 or €50,000, will be paid no matter when they die.

Funding inheritance tax

When structured correctly, whole of life can be used to fund a Capital Acquisitions Tax bill. We go into the detail of Section 72 policies in our inheritance tax guide:

Inheritance tax life insurance guide.

In all of these cases, the key word is certainty.

When It Probably Does Not Make Sense

Where I see problems is when whole of life is used as a starting point rather than a finishing touch.

If you still need to replace income, clear a mortgage or provide for children during working years, term life insurance is usually the more sensible foundation.

Whole of life rarely makes sense if:

• You need large cover during working years
• You are protecting a mortgage
• Your budget is already tight
• You only need cover until the kids are financially independent

It is about getting the order right.

Whole of Life vs Term Life

The practical difference is straightforward.

For context, €500,000 over 35 years for a healthy person in their 30s might cost around €45 per month on term cover.

The same €500,000 as guaranteed whole of life can run into several hundred euro per month.

That difference is not small. It shapes what is realistic.

Most term policies also include a conversion option, so if circumstances change later, you can extend cover without fresh medical evidence. The premium would be based on your older age, but it does give flexibility.

Whole of Life With Cashback

Some guaranteed whole of life plans include a cashback feature.

After 15 years, you may be able to stop paying premiums and keep a reduced guaranteed amount, or cancel the policy and receive cash back of 70 per cent of the premiums you have paid.

Those policies usually cost about 10 percent more from the start.

A simple example helps.

If a 45 year old takes €80,000 whole of life with cashback at €110 per month, after 15 years they will have paid €19,800. If they choose to cancel at that point, the cashback could be roughly €13,860.

It’s not an investment strategy. It is simply a flexibility feature.

Hybrid Term Plus Whole of Life

For many families, the most balanced approach is combining both.

You take a larger term policy for the heavy lifting during working years and add a smaller whole of life amount that continues once the term ends.

For example, a couple might take €470,000 term cover for 35 years plus €30,000 whole of life. Their premium could be around €70 per month.

Over 35 years they might pay roughly €29,400 in total.

If they both live beyond the term, the €470,000 expires but the €30,000 continues on both lives without further premiums and is guaranteed to pay out on each life.

That structure protects what matters now while still guaranteeing something later, without committing to a very expensive full whole of life policy.

The Risk of Getting Whole of Life Wrong

Whole of life is difficult to reverse.

If you stretch the budget too far at the start, it is often the policy that gets cancelled first when finances tighten.

If your health has changed by then, replacing that cover might not be possible.

Another mistake I see is people arranging whole of life before properly covering their working years.

Protecting your funeral while leaving the kids exposed is rarely the right order.

Being accepted by an insurer does not automatically mean the policy was structured well.

The objective has to be clear.

If the objective is not clear, the policy will not feel right in a few years’ time.

How Much Does Whole of Life Cost?

Smaller policies designed to cover funeral costs can be manageable.

Larger policies used for estate planning become expensive quickly.

The bigger the cover, the more dramatic the difference versus term insurance.

That is why most people don’t need it, and why when we arrange it, it is usually for a very specific reason.

What Should You Do Next?

If you are unsure whether whole of life is appropriate, the safest approach is to compare it alongside term cover and look at the numbers properly.

Complete the questionnaire below, and I will tell you whether it makes sense in your situation.

Complete the financial questionnaire

Or if you would rather talk it through first:

Schedule a call here