It depends upon your individual circumstances, but if you have children, a partner or a spouse who depend upon your income or a mortgage on your family home then you may need life insurance
We can guide you through the process, letting you choose policies to match your individual needs, budget and circumstances.
If you die during the term of your policy, your family will receive a lump sum of money to help pay the bills and provide for them. The lump sum amount is chosen by you and is based on a variety of factors, such as your partner’s employment status, the number of dependents you have, your outstanding loans and your standard of living.
The policy is designed to deliver a fixed amount of cover over the term of the policy unless you choose indexation – increasing your cover in line with inflation – or you exercise your guaranteed insurability (GI) option – choosing to buy additional life insurance cover at a later date.
You can choose single cover to insure one of you, or joint cover to insure you and your partner/spouse.
This could pay out the full amount of cover when life expectancy is less than 12 months on plans with a term of at least two years.
Included at no extra charge for policies with a term of two years or more, terminal illness cover ensures that the life insurance policy will pay out the full amount if you are diagnosed with a terminal illness, rather than in the event of your death.
You need to be eligible to claim. For example, if you stop paying premiums, or fail to tell us about a medical condition, your policy may not pay out.
By ‘terminal’ we mean suffering from an advanced or rapidly progressing incurable illness where, in the opinion of the Chief Medical Officer of the policy provider, life expectancy is less than 12 months.
Terminal illness cover is not available during the last 12 months of the life insurance policy term and is only available on plans with a term of at least two years. Once a terminal illness claim has been accepted, the life assurance plan will end and further pay outs cannot be claimed. No premiums will be payable either and the policy will cease.
If, after a terminal illness claim has been accepted, the policyholder survives to the end of the term, they won’t be expected to pay back the terminal illness payment received. However, no further pay outs can be claimed on the policy and the policy will cease.
If you are aged under 55 and accepted on standard terms and normal rates, you will be eligible to take out a Waiver of Payment option on your life or critical illness assurance. This means that providing that your policy payments have been kept up to date until the point of claim, you won’t have to pay premiums if you suffer an illness or accident that stops you working for more than six months.
You must continue to pay your premiums for the first 26 weeks if you are incapacitated. However, your premiums are waived after 26 weeks if you are unable to work because of incapacity.
If you are not in work, then your premiums are waived if you are unable to perform three or more functional assessment tests. Premiums will continue to be waived until you either:
This is optional, but it has to be chosen at the start of your policy. Indexation protects your policy against inflation. Every year, you are given the option to increase the amount you’re insured for (up to a maximum of 10%), in line with any changes in the Retail Prices Index (RPI)* without the need for further medical evidence. Your premium will increase at a different rate to your amount of cover because it’s indexed by the change in the RPI multiplied by 1.5 up to a maximum of 15%. This takes into account the fact that the likelihood of claiming increases as you get older. If changes to the RPI are 1% or less then both your premium and amount of cover will stay the same until the next review. * The Retail Prices Index is a way of measuring the impact of inflation on family budgets and is set by the Government.
Our short explainer video will guide you through the basics of life insurance, answering questions such as ‘What is life insurance?’, ‘Why do people have it?’, and ‘How does life insurance work?’
Length 2m 42s
We prioritise people over products. Once we’ve received your details by telephone, we visit our life insurance and critical illness customers at home, making sure to answer any questions you have and completing the paperwork in person.
Our client account manager service also means that we get to know your individual needs. Whatever your circumstances, we can help find the right solution for both you and your family.
Length: 4m24s
If your spouse or civil partner passes away, you may be able to claim Bereavement Support Payment. This consists of £2,500 (or if you have children, £3,500) and a further 18 monthly instalments of £100 (or if you’re eligible for Child Benefit, £350).
Life insurance is a way of offering your family financial support when you die. The pay-out can be used to help with a number of areas, such as clearing debts, paying off the mortgage or just covering everyday expenses. Ensuring that some money is set aside for a funeral can also be covered by your life insurance policy payout.
Your premium will vary depending on the type of policy, the size of the sum assured and also the risk of a claim. Age is also a factor, so life insurance will generally be more expensive the older you are. Similarly, if a customer is in bad health, they can expect to pay a higher premium. The insurer will take into account occupation, hobbies and lifestyle – such as whether you smoke, your weight and your fitness – to help determine their premiums. Even postcodes are checked, as certain areas of the country are more likely to claim.
It makes sense to buy life insurance as young as possible as older people pay more for their premiums, so do it in your 20s and 30s rather than your 50s. Improving your health by losing weight and giving up smoking will also significantly reduce your premiums.
There are no hidden extras as premium payments include all expenses and you will pay the same throughout the term of the plan.
Depending on how old you are when you take out the policy, there are various options for determining the term, or length of the plan. Level term insurance is between one and 50 years.
Yes. If you decide to include it in your plan, you can choose guaranteed premiums. You cannot increase the sum assured in the future, but you can take out a new policy.
As life insurance is an important financial safety net, it’s essential that you answer all of the questions accurately. We’ll guide you through each step to make sure you are adequately covered, but if you fail to mention something like a medical condition, your policy may not pay out in the event of a claim.
Level Life Insurance – all life insurance plans are not investment products, they have no cash-in value at any time. Also, if you stop paying the premiums before the end of your policy, your cover will end after 30 days. Terminal illness cover is not applicable for the last 12 months of a policy term.
Our insurance company partner clearly details the circumstances under which the policy would not pay out, as well as other terms and conditions. It’s important to read both the appropriate Key Features document and the Policy Conditions document carefully before buying life assurance.
Some employers may offer life insurance in a ‘death-in-service benefit’. This, like regular life insurance, pays out a lump sum if you die while in employment. This is typically at a rate that’s four times your annual salary. While it can be a valuable benefit, you might need to take out additional life cover depending on certain factors such as how much you owe on your mortgage, or any financial provisions for your loved ones’ futures.
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