Whole of life plan

Cashing in some or all of your whole of life plan

If you’re considering accessing some or all of the cash in your plan, we’ll be happy to help. It’s important to note that once you’ve told us what you’ve decided to do, you can’t change your mind. Please be sure you understand all your options, and the effect  of any changes you make. There are a few things you and any other plan owner should think about before you make any decisions.

If you have any questions once you’ve read this summary, or need any help understanding your options - just call us on 0345 640 1000 or +44 178 644 8844 if you’re calling from abroad.

How a whole of life plan works

A whole of life plan is a long-term savings and investment plan with life cover, which pays out a lump sum on death. You make regular payments over an agreed number of years, or until death. Some plans will accept single payments. The level of life cover is chosen at outset and the cost of this cover may be reviewed.

These plans are usually intended to cover funeral costs, provide for loved ones, or to help pay an inheritance tax bill.

Your options

These vary depending on your plan type and the benefits you’ve chosen. We can explain your options further if you call us. They could include:

  • Fully cashing in your plan.
  • Cashing in part of your plan.

Alternatives may include making your plan paid up where you stop making payments but don’t cash it in or reduce your payment.

How your options could affect your plan

When making changes to your plan it’s important to ensure that the level of cover remains sufficient for your needs.

Possible effects could include:

  • Reduced or lost life cover and benefits can be harder and more expensive to replace later in life, particularly if your health has deteriorated.
  • If you cash in a plan which is invested in the With-Profits Fund this may result in a market value reduction which can reduce the value of any withdrawals taken from the fund.
  • A review of payments and further health assessment.
  • A change in tax status, which might mean paying more tax in the future.
  • A change to charges, or additional charges, to your plan.
  • Plans are designed to pay out on death. Cashing in early, together with changing investment values can affect the value.
  • If you’re invested in one of the PruFund protected funds any cash in will reduce your guaranteed amount.

You may have additional benefits depending on the type of plan you have and the options you chose at outset. These may include sickness or disability benefit, conversion options and the right to change the life assured. We’ll tell you if any of these apply and explain how your changes might affect them if you call.

The value of your investment can go down as well as up and you may not get back the amount that you put in.

Protecting yourself from investment scams

According to Action Fraud, the UK’s fraud and internet crime reporting centre, an estimated £1.2bn is lost to investment scams every year. So if you’re thinking of reinvesting the money from your plan, take a minute to find out how to stay ahead of the scammers.

What to do now

Give us a call on 0345 640 1000 or +44 178 644 8844 if you’re calling from abroad. 

We can’t give you advice or make your decision for you, but we’ll be happy to help you understand your plan and talk you through all your available options and their possible implications. 

Alternatively, speak with a financial adviser - if you don’t have one, you can get details of financial advisers in your area from the www.pru.co.uk and selecting ‘Contact a Financial Adviser’. Financial advisers will charge you a fee for any advice they give you, but it will be personal to you.

We’re here 8am - 6pm Monday to Friday and happy to help in any way we can. Please make sure you have your plan number to hand when you call.