Whole of life insurance (WOL) guarantees the payout of a lump sum whenever the policyholder dies, so long as the monthly premiums are maintained.

The difference between whole-of-life insurance and term insurance is that term insurance only runs for a set period.

If you die in that time, it pays a tax-free cash lump sum (under current legislation tax year 2017/2018) to your loved ones, but if you live beyond the term, your plan has no cash-in value.