Prepare for the unexpected
Expert Insurance Advice
Life Insurance Cover
Do you want peace of mind knowing your family will be taken care of if the worst were to happen? A life assurance cover can deliver just that, with options to cover a variety of needs.
What is life insurance?
Life insurance or a life cover is an insurance policy that pays out a lump sum in case of the death of the insured person. If you insure yourself, a policy will pay out in case of your accidental death during the time the policy is in place. The money can be used by your family for any purpose, like paying of debts, funeral costs or put aside as savings that can be used in the future.
What are the different types of life insurance policies?
There are two types of life insurance cover:
Term life insurance is a cheaper version of life policies as it only pays out within the specific period that has been agreed. For example for as long as your mortgage is in place.
There are two types of term life insurance – level and decreasing.
Level term insurance will pay out a specific amount of money, that has been agreed at the outset. For example, level term insurance for £100,000 for 20 years, will pay £100,000 whether it is year one, or year 18 of the policy. The drawback of this policy is that it is not increased in case of inflation and the amount is the same at the beginning and the end. It is good to periodically adjust the value of a policy to fit your needs.
Decreasing term insurance is widely used as mortgage protection insurance. It is a low-cost insurance policy that will pay out the outstanding balance of your mortgage. As the name indicates, the amount of the payout will depend on the time is claimed and for example, 20 years policy will have a higher payout in year one than in year 18, when the mortgage is almost paid off.
The whole-of-life insurance policy lasts your whole life, regarding how long will you live. The policy will pay out the lump sum in case of your death, regardless of your age. Because no one knows how long will you live, the term of the policy is open and therefore the policy is more expensive.
Benefits of life assurance policy
- Adaptable to life changes – because life is constantly changing, your life insurance needs to adapt as well. In certain circumstances, life cover can be changed, increased or decreased without penalties. We can also arrange a new cover if it is needed and make sure it is suitable for you at any point in your life.
- Free cover – in many cases we can offer a free immediate cover before the full underwriting takes place. Get cover as soon as your application is complete.
- Dual-life or joint-life cover – there is a difference between joint cover and dual cover. Joint cover automatically ends if you make the first claim, while dual cover means there are two individual policies in place and if there was a claim for one person, the policy stays in place for the other, who will still be protected. The dual cover is suggested for parents, who want to make sure that in case of a second death, their children will be protected. The joint cover might be enough to pay off the mortgage.
- Flexibility – some insurance policies allow to make other changes, like adding children to the cover.
- Peace of mind – with a life cover you have peace of mind that if anything happens your mortgage will be paid off.
- Other benefits – depending on the cover and insurance company, we might be able to offer free additional benefits, like free private GP, discounts on gym membership,
- 5* Defaqto rated – all our providers offer 5* Defaqto rated cover
How does life insurance cover work?
It simple. You pay a monthly premium, your loved ones will claim the policy in case of your death.
How much insurance cover do I need?
The amount of cover will depend on your need. Talk to us and we will analyse your circumstances and help you decide on the right amount. It is important to take into consideration the following:
Once you have a policy in place, it is a good practice to review your insurance needs every year. We can schedule an annual review with you and remind you to speak to an adviser to check if your cover is sufficient.