Sometimes, we have to think the unthinkable, and ask ourselves the right questions. What if I am not around anymore? Is my family safe? How will they fare without my income? Are they free from the burden of debt and worry? And how can I make sure life goes on if I am no longer there?
Nobody wants to dwell on these questions for longer than they have to. All you need to do is take enough time and care to make sure there is a policy in place to provide for your loved ones if the worst happens. Then you and your family can get on with doing the thing you enjoy most: living your life.
Life Insurance protects your family and makes sure they are financially secure in the event of your death.
Anyone with dependants and financial commitments.
If we knew what was going to happen 5, 10 or 20 years from now, we probably wouldn’t be talking about Life Insurance. Since we don’t, the only way to deal with the unexpected is to plan for it. Life Insurance is there to make sure your loved ones and family members who depend on your income are protected if anything happens to you, lifting the burden of financial strain at a difficult time.
Much depends on you and your needs. Premiums are calculated according to the type of life product, the level of cover you need, and how long the policy will last. It also takes into account your medical history, age, gender, and whether or not you smoke.
Again, this depends on your circumstances. You will want to think about your debts, such as university fees, loans and credit cards. You will also want to work out how much your family would need to support themselves without your income. Our consultants will help you calculate this.
There are six main types of Life Insurance. Each is designed to meet a particular need when death occurs.
- Term Assurance (level) is designed to pay out a fixed level of benefit on death (or terminal illness) during the selected term of the policy. Its value may be eroded by inflation.
- Increasing Term Assurance pays out an increasing level of benefit during the selected term of the policy. This increase can be aligned to a set percentage, or to a recognised index such as the Retail Price Index (RPI).It is designed to maintain the value of the benefit at or above inflation.
- Mortgage Protection Insurance reflects the reducing capital value of a repayment mortgage. The premium usually remains the same, but a claim in later years will be less that the initial sum assured.
- Family Income Benefit pays a regular income rather than a lump sum when a successful claim is made. The income will be paid only for the remaining period of the policy term, which makes it what’s known as a reducing benefits policy. Premiums are normally lower than the first three on this list.
- Whole of Life is a policy that remains in place for the full life of the insured person and will pay out the selected benefit whenever death occurs. The policy can be level or increasing. It is more expensive than the others, but guarantees to pay out so long as premiums are kept up to date.
- Guaranteed 50-Plus Life plan as its name suggests, is designed for people who are 50 years old and over, and guarantees that all applicants will be accepted, irrespective of their health. There is an initial waiting period of one or two years before a claim can be made on the policy.
Possibly; it is worth thinking about. You should check the terms of the existing policy provided by your employer. There are a few things to think about: would the policy give your family sufficient financial security if they had to cope without your income? It is also worth bearing in mind that if your employment ceases, so will your insurance – worth remembering in today’s fluid job market.
Tell us. It is important. We will need to take any pre-existing health conditions into account when your Life Insurance plan is underwritten.
No. Most people take out a policy to cover them for critical illness along with Life Insurance.
For an upfront charge, this is an option where the insurer pays your premiums if you are unable to, through illness or disability. When you are well enough to return to work the waiver of premium stops. There is usually a waiting period of 4 to 24 weeks before your insurer takes over the payment.
Because we are long established. Our independent status and long-standing relationships with all major insurers means we can offer impartial advice on a wide range of insurance products with the aim of finding you the best suited policy for you, tailored to your own needs and your budget.