What is Life Insurance ?
Life cover can be a valuable asset to have if you have a mortgage or just want to provide a lump sum for your family to cover the costs of living should the worst happen. This acts as a financial safety net for when you may need it the most.
Types of Life Insurance
Level Term Cover
Covers you for a specific amount over a specific term based on your needs and circumstances. Cover value and premiums stay the same throughout the plan unless you decide to apply indexation to the cover.
Decreasing Term Cover
Covers you for a specific amount and term based on your current repayment mortgage or loan balance and remaining term. This policy will decrease in cover annually based on your mortgage/loan balance reducing.
Example of how Life Insurance can protect your family
Tim suffered a stroke at age 47 and sadly passed away a less than a year later. He had taken out a life insurance policy a few years prior for £500,000. His wife Lisa was a housewife and was dependent on her husband’s income. She made a claim and was able to pay off the outstanding mortgage of £200,000 and used the surplus of £300,000 was used to give her some financial security.
Things to Consider
Life cover will only pay out on the diagnosis of a terminal illness or on your death within the term to your beneficiaries.
This will not pay out on a critical illness such as a heart attack, stroke or cancer, or the loss of income due to an illness or injury.
Unique to other types of insurance in the market, Life Insurance can be taken out for the rest of your life depending on your budget and requirements. This is known as Whole of Life Cover.
How it Works
A chance to meet the team to discuss your financial needs and goals
We carry out full market analysis to get you the best terms available
We will present the most suitable course of action to meet your objectives
We apply for your covers to ensure you are fully protected
We regularly review your cover to ensure it is still competitive
Frequently asked questions
How much life cover do I need?
How much will it cost me?
Premiums are dependent on your health & lifestyle circumstances, amount of cover & term applied for, your age at application and smoker status (which also includes personal usage of tobacco/nicotine products).
How old do I have to be to take out life cover?
You have to be 18 years old at a minimum to take out life cover in your name.
Can I also add my partner to my cover?
Yes, you can. Depending on your circumstances, we can recommend a joint life cover. Our advisers will discuss this option with you if it is relevant to your specific needs.
Will my premiums be fixed?
Yes, your premiums will be fixed (guaranteed) throughout the life of your plan.
Will my family have to pay tax on a life insurance claim pay out if I die?
Your life cover payout will go to your family after probate which can be time consuming and costly. Once they have received the payout, it will be counted as part of your estate and may be liable to Inheritance Tax (IHT). If this is placed into a Trust, it will not form as part of your estate.
What is a trust?
Can I make changes to my trust at any time?
Depending on the type of trust you have, you can make changes at any time. For example, you can change your trustees or beneficiaries.
What exclusions will I have on my cover?
Generally, insurance companies will exclude claims based on suicide, drug related death or alcohol abuse. You should always consider the terms and conditions and key features which will be sent to you.
I’m interested, but what if I were to take out cover later instead?