What is Life Insurance?
Most of us think nothing of insuring the home, car, pets and holidays but few of us take the time to insure the most important aspect – ourselves.
Life Insurance and many other forms of protection, protect the things that mean the most to you, your family, if you die during your policy, your loved ones will receive a cash lump sum, so if the worst should happen, you have peace of mind that your family will be financially secure and not have to worry.
Why have Life Insurance?
If something were to happen to you or a family member, would you still be able to afford the mortgage, bills or current lifestyle? Would you have to sell the family home? Would you have to leave your job or do more hours at work to cover the missing income? Would you have to pay for childcare?
Life Insurance gives you peace of mind that if something were to happen to you, you family would still be financially stable and would still be able to keep the family home, jobs and lifestyle.
Every 22 minutes a child loses a parent they rely on financially, Life Insurance makes sure your family don’t have to worry about money in case the worst was to happen.
How much does Life Insurance cost?
Life Insurance can cost as little as £5 per month, however, let’s be a little more precise:
A 35 year old non-smoker male with £200,000 of Life Insurance to age 65 would have a monthly premium of £8.68*
A 40 year old non-smoker couple with £250,000 of Joint Life Insurance on a 25 year term would have a monthly premium of £21.63*
A 25 year old non-smoker female with £250,000 of Life Insurance and £100,000 of Critical Illness Cover to age 65 would have a monthly premium of £34.73*
A 40 year old non-smoker male with £100,000 of Business Insurance to age 65 would have a monthly premium of £9.22*
*Client has no previous medical history and an average BMI.
What are the different types of Life Insurance?
Level Term Insurance is a great way to help protect your family, if you are diagnosed with a terminal illness or you die during your policy term, it provides a level cash lump sum which your loved ones can use to pay off any outstanding liabilities and replace income.
Decreasing Term Insurance is a great way to provide a cash lump sum to pay off your mortgage if you are diagnosed with a terminal illness or the worst happens. This form of protection is linked to any long-term outstanding liabilities, like your mortgage; therefore, the level of protection decreases alongside your mortgage.
Family Income Benefit is available as a form of level or decreasing term insurance, this enables you to provide your partner or family with a steady income after death over a cash lump sum.
Whole of Life Insurance guarantees the payment of a lump sum on the death of the policyholder, providing premiums are maintained and full medical disclosure has been provided. Under Whole of Life Cover, a proportion of your monthly premiums are invested by the provider in to life funds, meaning this a form of investment alongside life insurance.
It is always advisable to place life insurance policies under trust, therefore the cash lump sum provided after death is payable outside the estate, please contact us for more information.
How do I know my policy will pay out?
If you are 100% honest during our fact find procedure, then the answer to this is, your policy will pay.
Make sure you disclose any medical history during the fact find process, and if you have the occasional cigarette, make sure you tell us, therefore as long as we have all the correct information, your policy will pay on any valid claim.