This is a policy that provides a payment on death regardless when death does occur subject to the necessary premiums being maintained through out the life of the plan.

Generally premiums to for these types of contracts should be payable for the life of the contract but there are occasions when this may not be the case due to sufficient monies being available within the plan to meet the cost of the mortality deductions.

A whole of life policy is expected to pay out the life cover whenever death occurs that could be now when the life assured might only be in their twenties or it may be way into the future when they are in their nineties. With this huge unknown it is critical that the life company has sufficient monies to meet the cost not least for their members or shareholders sake but also for the beneficiaries of the life policy itself.

This is one of the reasons that most whole of life policies have an investment element within them.