Life Insurance Questions and Answers
What is life insurance?
Life Insurance is the most straightforward and cost effective way to help protect your dependants financially in the event of your death. If you die during the term of your life assurance policy, or you are diagnosed and are eligible to claim for a terminal illness (although not in the last 18 months of the plan), there is a lump sum payout.
Why should i get life insurance?
There are many types of insurance available, from redundancy and illness cover to health insurance. Often these types of insurance have so many complex clauses in them, they're really a minefield, so if you want the most simple type of insurance to ensure you family are covered in case of death, life insurance will give you peace of mind.
How much life insurance cover should I get?
You can choose how much life insurance you buy, and your premiums will reflect this amount. At the very least, people usually want their policies to cover the outstanding balance of their mortgage, or to pay off all outstanding balances of any loans they have. Many employers provide up to four times your salary as life cover, however this may not be enough to maintain your family's present standard of living, if you are unsure please contact an independent financial adviser who will help you decide on the appropriate level of life assurance cover for your personal circumstances.
How are my life insurance premiums calculated?
Life Insurance premiums are based mainly on: your age, your sex, your occupation, whether you smoke, your medical history, the level of cover you need and the type of contract that you choose. For example, a 50 year old smoker asking for £400,000 cover will have higher life insurance premiums than a 25 year old non-smoker asking for £200,000 cover.
How much does life insurance cost?
You can purchase Life Insurance cover from as little as £5 a month. This is the minimum premium, and your cover will depend on your individual circumstances, type of cover required, and the amount you wish to be covered for. The more you pay, the greater the benefits your dependants stand to receive if and when the policy pays out.
Will a joint life policy be paid twice?
No. The amount assured in your joint life policy is the amount paid in the event of a valid claim. That amount will be paid on the first death, or diagnosis of a terminal illness,to the surviving policy holder. At this point the policy will end, and no further payments will be made.
What is Level Term Life Assurance?
Level Term means the amount you are insured for remains the same throughout the term of your policy. If there is a claim at any point during the term, the sum you are insured for is paid out, regardless of how near of far from the end of the policy you are.
What is Terminal Illness Cover?
Terminal Illness Cover covers your life insurance, or mortgage life insurance policy and will pay out the full amount if you are diagnosed with a terminal illness which was not diagnosed before you took out the policy.