Section 72 Whole of Life Policies

A Section 72 policy is a Whole of Life insurance policy that an individual or a couple can take out. They can choose to have a fixed Sum Assured for a Fixed (non reviewable) monthly premium for life.

The distinct advantage to this Section 72 policy is that the proceeds of the policy will ultimately be tax-free to the beneficiaries, as long as the proceeds are used to pay Inheritance Tax. With current CAT rates of 33%, this is a big future saving.

The policyholder(s) would both have to complete a health questionnaire and pass a medical; the attractive premiums don’t apply if the Life Insurance company ‘loads’ the premium for health reasons.

It if very important that the beneficiaries & Executors of an Estate are aware of the Section 72 Policy.