Whole of Life Insurance

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You may not think you need as much life insurance once you’ve retired or paid off your mortgage. But the need for cover doesn’t necessarily end entirely. When you die your loved ones could still be faced with a loss of income and immediate costs such as funeral charges and inheritance tax.

The benefits of choosing Whole of Life insurance are:

• Life long protection (unless you cancel your policy)
• Choice of future premium calculations:
  • Level premiums that won’t increase with age (or you can choose to index your cover to ensure it keeps up with the rate of inflation)
  • Whole of Life cover with Premium Optimiser or Whole of Life cover with Interest Rate Optimiser resulting in lower starting premiums that increase annually
• A guaranteed payment on death paid to your loved ones (usually your beneficiaries)
• Be confident in your choice knowing our Whole of Life insurance is independently rated 5-star by Defaqto

Whole of Life Premium Optimiser and Interest Rate Optimiser options

When taking out Life cover, we understand that affordability and quality are key factors in your decision. This could be due to other impacts on your income such as mortgage payments, or just being in the early stages of your career. With our new Optimiser options for Whole of Life, you’ll receive an upfront premium discount of up to 47% off depending on your age, with premiums increasing annually thereafter.

You are able to choose how your future premiums will increase from two options

• Premium Optimiser – annual 2.5% fixed premium increase
• Interest Rate Optimiser – annual premium increase between 1% and 2.75% based on the Long Term Interest Rate

The Long Term Interest Rate is defined as the 20 year rate from the Bank of England’s UK government liability nominal spot rate curve. This is a publicly available rate and the current rate can be accessed via http://www.bankofengland.co.uk/statistics/pages/yieldcurve/default.aspx/. Please use the following steps to find today’s rate:

1. Under “Latest Data”, select the “Nominal (government liability)” chart
   • If you are looking for historic interest rates, first select the "archived data" option.
2. Select the “spot curve” tab
3. Scroll across “Maturity years” to find the 20 year rate column (“20.0”)

The Long-Term 20 year rate for the quarter taken on the 1st working day in July is 1.73%. This rate is effective from 1st July - 2nd October 2016. Please note: The new rate can take a few days to update at each quarter.
You will also receive confirmation of the Long-Term Interest Rate being applied in your anniversary letter each year¹.

Long-Term Interest Rate	Annual Premium Increase
2% or less	2.75%
3%	2.5%
4%	2%
5%	1.5%
6% or more	1%

Although upfront premiums for Whole of Life cover with Premium Optimiser or Interest Rate Optimiser will start lower than a traditional Whole of Life plan, the total premium paid over the life of the plan may be higher than a plan without Premium Optimiser or Interest Rate Optimiser. For further information on Premium Optimiser or Interest Rate Optimiser, please call us to speak to a VitalityLife adviser.

Big savings and rewards with Vitality Optimiser

Our award-winning Whole of Life Cover is more rewarding with Vitality Optimiser. If you qualify² and add Vitality Optimiser you will enjoy:

• Up to 47% off your protection premium – save on our standard Whole of Life Cover premium with an upfront discount ranging from 25% to 47%
• An additional 1% premium discount each year – the opportunity to earn a 1% premium discount at your plan anniversary if you look after your health and get active. If you don’t get involved, your premium will increase by 2% each year.
• Up to £100 cashback in your pocket – get from £50 to £100 cashback based on looking after your health and getting active. Just like the additional premium discounts you could earn each anniversary, the cashback you earn is linked to the Vitality points you earn by getting active

Plus, with Vitality Optimiser you get rewards that can help you to save with big UK brands. Savings range from 50% off monthly gym fees at Virgin Active (a joining fee will apply)³ to a weekly cinema ticket at Cineworld or Vue⁴ and 50% off a pair of running shoes online and in-store at Sweatshop.

Explore all the savings and rewards of Vitality Optimiser

Take out a Whole of Life Optimiser option, with Vitality Optimiser², and depending upon your age, you could save up to 73% on upfront premiums⁵.

How to apply or find out more?

¹Vitality has no control over the future performance of the Long-Term Interest Rate. The Long-Term Interest Rate can decrease or increase at any time over the duration of a Whole of Life Plan.

²Minimum monthly protection premiums of £20 (single life) and £30 (joint life) apply.

³The gym discount applies to flexible individual monthly memberships. Gym joining fees are up to £50 for all clubs other than Classic Collection clubs, where joining fees are up to £150. The gym offer does not apply to Chiswick Riverside Virgin Active club.

⁴The cinema offer applies at Vue and Cineworld with a maximum of one ticket per week per person covered on the plan. The cinema offer excludes 3D films.

⁵Although premiums with the Interest Rate Optimiser and Premium Rate Optimiser will start lower than our traditional Whole of Life plan the total premium over the life of a plan may be higher than a plan without the Interest Rate Optimiser or Premium Optimiser.