Life Insurance

Peace of mind that your loved ones are taken care of when you’re no longer around.

Protecting those you care about the most

Life insurance gives you peace of mind that any financial commitments you have – including your mortgage, childcare costs, or funeral expenses – are taken care of when you’re no longer around.

 

Life Insurance pays out a cash sum should you pass away or earlier if diagnosed with a terminal illness.


The cash sum could be used by your loved ones to help pay off any financial commitments such as a mortgage or covering your funeral costs. There’s no restrictions on how they can use the money – helping them plan for the future.

Which type of life insurance is right for me?

Level
The amount of cover you choose and your premium will remain the same throughout the term of your policy.

 

Decreasing
The amount of cover you choose reduces each month, however, your premium remains the same. This is normally chosen to cover a repayment mortgage.

 

Increasing
The amount of cover you choose increases each year in line with the Retail Price Index (RPI). Your premium will also increase for this type of cover. This means that your cover amount stays in line with inflation.

 

Whole of Life
Whole of life insurance covers a person for their whole life. If your health deteriorates, your premium won’t be affected. However, these policies are often more expensive than others.

How much cover do you need?

The amount of life cover you need will vary depending on your personal circumstances.


It’s worth thinking about how much:

 

  • Is left to pay on your mortgage
  • Other debts you need to pay off
  • Money you’d need for childcare or education
  • Money your family may need to cover your funeral
  • You can afford to pay on life insurance premiums
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More about Life Insurance

The cost of the monthly premiums is determined by several factors, including how long the cover lasts, your age at the time the policy starts, your health, your lifestyle and your family medical history.

 

Hobbies that may be considered to be dangerous, such as mountain climbing, diving or flying can affect premiums as well as hazardous jobs and activities that you may be required to do as part of your employment.

 

During the application process you will need to complete a medical and lifestyle questionnaire where you will be asked about your health and circumstances, after which the insurer will then confirm the cost of your monthly premiums.

The ideal length of the policy can vary depending on your personal circumstances and also the reasons for why you have taken out the cover. If you are looking to cover against a specific liability such as a mortgage, then you may wish for the term of the cover to match the remaining term of your mortgage, so that the balance of the mortgage is always covered.

 

Alternatively if you are looking to support your children while they are still young, then you may wish the term of the policy to run until they are at a non-dependable age.

 

Or you may want the term of the policy to run until you reach a certain age, such as your expected retirement, or when you have planned that your financial commitments will reduce.

There are many reasons to consider putting your life insurance into a trust, including protecting your beneficiaries from inheritance tax or helping to avoid probate.

 

A trust is a simple legal arrangement that allows you to gift your life insurance policy to someone else (the beneficiary). It is a good way to ensure that your life insurance is not considered to be a part of your estate when you die, so your beneficiaries won’t face the worry of inheritance tax on your life policy.

 

If you have a joint life policy then both of you must agree to place your policy in trust.

 

Putting your life insurance plan into trust, means that you give your policy to the trustees who then legally own your policy and look after it for the benefit of your beneficiaries. You are still responsible for paying the insurance premiums, but the trustees will be responsible for keeping the trust deed and any other documents safe. They make the claim on your policy and ensure that the money goes to your beneficiaries as you intended.

Joint life policies are often chosen by couples. You choose an amount of cover, which is paid out in the event that one of you passes away during the length of the policy.

 

The surviving partner will then receive the sum of money. The policy will then end on pay out.

Experience you can trust

Speak to us to discuss your requirements and the options available, book a call (no obligation) to speak to one of our advisers here.