Life Insurance

Personal Insurance

Peace of mind, should the unforeseen happen

Life Insurance

Gives you peace of mind that any financial commitments you have, are taken care of when you’re no longer around.

Critical Illness

Critical illness insurance pays out a lump sum in the unfortunate event of being diagnosed with a serious illness.

Income Protection

Income Protection pays a monthly benefit if you are unable to work due to illness or injury to supplement an income.

Family Income Benefit

FIB is a type of life insurance that provides a regular income for your loved ones if you die during the term of the plan.

Life Insurance

Protecting you and your family

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. The policy pays out a sum of money to your beneficiaries or dependents if you die within the term of the plan. 

 

  • Pay off the mortgage
  • Replace a lost income
  • Pay for day-to-day living expenses
  • Clear outstanding debts
  • Provide funding for the children’s education or leave as an inheritance

 

The cost of life insurance will depend on several factors, such as your age, whether you smoke, your lifestyle and your health, how much cover you want and the duration of the policy.

 

The policies can be set up individually or as a joint policy with another person such as your spouse or partner. The type of cover is normally set up on a level, decreasing or increasing term basis. 

Critical Illness

Ease the worry about making ends meet if you become seriously ill

Critical illness cover is a type of insurance policy that offers protection in the event of a being diagnosed with a serious illness. If you, unfortunately, suffer from a specific illness, the insurer will pay out a lump sum, which can be tax-free.

 

A critical illness can include heart attacks, strokes and non-terminal cancer. Critical illness can also cover you if you’ve suffered a physical disability following an injury, such as after an accident at work.

 

  • You will receive a tax-free, cash lump sum if you are diagnosed with a condition covered by your policy, such as cancer, heart attack, stroke and many more
  • Add cover for children to help you cope and concentrate on the most important thing – being there for your little one
  • Combine with a life insurance plan and pay just one monthly premium
  • Replace an income if you’re too unwell to work

 

Your lump sum pay-out could be used to cover some of the following costs:

  • Mortgage – Pay off all or part of your mortgage so you don’t have to worry about the roof over your head.
  • Earnings – If you are unable to work you may need to replace your income with regular or one-off payments
  • Outgoings – or peace of mind, you may want to use part of the pay-out for household bills or other outgoings
  • Treatment – Your pay-out could pay for private medical treatment or specialist treatments

Income Protection

When you’re ill or injured and can’t work

Income Protection pays out a regular benefit to supplement your income if you are unable to work due to illness or injury.  Policies can be set up to run alongside your sick pay arrangements through work.

 

If you are self-employed you may not have any sick pay arrangements and would have to rely on savings in the event you are unable to work. Income Protection can be a lifeline, to support maintaining your bills and lifestyle costs.

 

  • Receive a monthly benefit to replace your income if you are unable to work due to illness or injury.
  • Pays up to 70% of your income, depending on the policy and insurer.
  • Short term plans can payout for up to 2, 3 or 5 years, or long term plans can continue to pay out right up to your planned retirement age.
  • Choose when your benefit starts paying.
  • Align the policy to your current sick pay arrangements.

 

With income protection, you don’t have to worry. Not only does it supplement your income, but it also provides support to get you back to work – and your life back to normal.

Family Income Benefit

Financial security to cover day-to-day living expenses

Family income benefit is a type of life insurance that provides a regular income for your loved ones if you die during the term of the plan. Most families rely on at least one regular monthly salary to cover their household spending.

 

Bills and other financial commitments need to be met and a loss of income could mean financial hardship – this is where family income benefit life insurance can help in terms of providing financial support. Rather than paying out a single tax-free lump sum as a standard life insurance policy would, family income benefit pays a series of smaller monthly amounts, tax-free, with the aim of replacing lost income.

 

  • Pays out a regular monthly benefit to replace a lost income
  • Can help with financial planning with a simple regular income
  • Family income benefit may appeal to families with young children – particularly where one parent is the primary earner
  • Can be set up as a joint and will payout to the surviving partner
  • Payments are tax-free

Personal Protection FAQs

More about Life Insurance

Level
Level-term insurance covers you for a period of time (the term) and the amount is a fixed lump sum of money which is left to your benefactors, if you pass away during the term of the policy.

 

Decreasing
Decreasing cover is a type of insurance plan that is often (but not always) bought to clear a specified debt such as a mortgage. The value of the sum of money insured decreases over the term of the policy, typically inline with the value of the debt.

 

Increasing
An ‘index linked option’ allows the policy benefit to increase on an annual basis. This helps to offset the effects of inflation. Most policies can be arranged to increase in line with the retail price index, or in the case of some insurers, by a specific percentage per annum.

 

Joint Cover
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.

 

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.

 

Over 50s
An Over-50s plans tend to offer a smaller pay out to cover things such as funeral expenses, the amount you pay for your premium is guaranteed so it won’t go up or down.

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 amount of cover that will be suitable for you will depend on your personal circumstances. Typically, the amount of cover that is right for you will be based on covering a specific financial commitment, such as a mortgage balance, or an amount of money you wish to leave to your benefactors/dependents to support them with day-day living costs.


You may wish to take out a small plan to cover funeral expenses.

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.

More about Critical Illness Insurance

Critical illness cover pays out a lump sum if you are diagnosed with a condition that is described in your policy.

The three most common conditions that claims are for:

 

  1. Cancer
  2. Heart Attack
  3. Strokes

 

Many policies will cover you for between 40 and 120 conditions depending on the insurer. Other common conditions that are claimed for are – Multiple Sclerosis, loss of vision or hearing, loss of limbs, HIV Infection, Motor Neurone Disease.

No one knows if or when they will be affected by a serious or critical illness and being unable to return to work or the stress caused for you and your family by having to take time off from work to recover. This can put extra pressure on you as you worry about meeting financial commitments such as your mortgage or paying the bills.

 

Critical Illness insurance can be a valuable support if you are unfortunately diagnosed with a serious illness and are unable to work. The cover pays out a lump sum that you choose how you wish to use it. You can use it to repay a mortgage, pay your day-to-day bills or help with your recovery and treatment.

 

If you don’t have savings, critical illness cover can provide valuable financial support in the event that you become seriously ill.

 

Don’t assume that if you don’t have dependants you don’t need cover. If you live on your own, for example, you will need to ensure any rent or mortgage commitments are paid each month. You don’t want to have to worry about keeping up with your financial commitments when you are unwell, recovering from injury or adapting to incapacity.

  1. You are diagnosed with a critical illness
  2. You make a claim directly with the insurer, you may need to supply medical evidence of your diagnoses
  3. The insurer will then pay-out the claim, once this is complete the policy terminates
  4. You use the pay-out how you wish

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.

 

An insurer will assess your risk of suffering a critical illness and will typically look at these main areas:

  • Age – You are at a higher risk of suffering a serious illness the older you are
  • Medical history – insurers will want to know about your previous medical history to know if you have suffered from illness in the past.
  • Family – Insurers will also want to know about your family’s medical history, including serious illness and ages your family suffered from these conditions.
  • Your current health – some factors that will considered when determining the monthly premiums are – what is your height and weight, do you currently or have you been a smoker, how much alcohol you regularly drink, any drug use.

Children’s Critical Illness cover is offered by a number of insurers as an addition to your critical illness plan. Some insurers will even offer this cover included at no extra cost.

 

Many plans will cover natural, legally adopted and stepchildren, as well as any children that you may have in the future.

 

Typical the child must be aged between 30 days and 18 years old, or 21 if in full time education.

 

When a child is diagnosed with a critical illness or has an accident, the parents often have to take time off work, or even leave work, to focus on looking after them. Typically this involves daily hospital visits, child care for any other children in the family, or making adaptions to the home or family car, all of this can have a huge emotional and financial impact.

 

Children’s critical illness cover can help reduce any extra stress by supporting with these additional costs.

More about Income Protection

Income Protection insurance pays an agreed monthly benefit if you are unable to work due to long term sickness or injury. This can be particularly useful if your employer does not provide an adequate sick pay scheme.


The monthly benefit can be used to help to maintain your lifestyle and make sure that your financial commitments such as mortgage and bills are paid.

 

You can receive up to 70% of your regular (pre-tax) monthly income depending on the plan that you take out.


If you are unable to work due to sickness or injury, you may only be entitled to Statutory Sick Pay (SSP), therefore an Income Protection plan can supplement an income until you are able to return to work. If you do not have an Income Protection plan in place you may have to rely on savings to cover living costs while you are unable to work.

 

Income Protection insurance is very beneficial if you are self-employed and do not have a sick pay scheme.

Yes. The amount of benefit you are allowed to take will be based on your annual income. You may be required to prove your annual income during the application process.

 

You will also need to complete a medical and lifestyle questionnaire as part of the application and disclose any dangerous or hazardous activities you are required to do as part of your job.

  1. You are unable to work due to long term illness or injury, and are signed off work by your GP or other medical professional.
  2. You make a claim directly with the insurer, who may require you to provide a GP sick note.
  3. The insurer will start paying your monthly benefit after the policy deferred period has been reached.
  4. Your policy will pay out until you return to work or until the policy pay out claim length.

Deferred Period
The deferred period is the length of time between being unable to work and when the insurer will start paying the monthly benefit. Deferred periods can range from as soon as 1 week up to 12 months. As an example a policy with a 4 week deferred period will commence payments once you have been off work for a period of 4 weeks.

 

How long the deferred period should be will be determined by a number of factors, for example, does your current employer offer any additional sick pay benefits, do you have any other sick pay arrangements, how long you can survive with reduced income, do you wish to use any savings. Typically the longer the deferred period is on the plan the cheaper the monthly premiums are.

 

Claim length
You can choose a plan with either a short or long term claim length.

 

Short-term income protection is designed to cover you should you be unable to work due to injury, or long term sickness. The period of claim is for a fixed amount of time, usually one, two  or five years.

 

Long-term income protection is designed to cover you should you be unable to work due to injury, serious or terminal illness. Pay-outs will continue until you return to work or when the policy expires – usually when you reach retirement, or at the end of a fixed period.

 

Amount of benefit
Dependent on the insurer, you are able to cover anywhere between 50% to 70% of your income.

 

Waiver of premium
With waiver of premium you won’t have to pay your policy premiums during periods when the income protection policy is paying you benefits.

 

Premium Basis

  • Guaranteed premiums – the monthly premium cost will remain the same throughout the term of the policy.
  • Reviewable premiums – the provider may increase the monthly premium cost during the term of the policy. Providers will review your premiums periodically, although typically most providers will not change the premiums within the first 5 years.
  • Age-costed premiums – the monthly premium will increase every year at the start of the year or on the anniversary of the plan or your birthday (provider dependent). The rate of increase is dependent on the level of benefit, your age, and your chosen deferred period.

You can choose a plan with either a short or long term claim length.

 

  • Short-term income protection is designed to cover you should you be unable to work due to injury, or long term sickness. The period of claim is for a fixed amount of time, usually one, two or five years.
  • Long-term income protection is designed to cover should you be unable to work due to injury, serious or terminal illness. Pay-outs will continue until you return to work or when the policy expires – usually when you reach retirement, or at the end of a fixed period.

More about Family Income Protection

You receive a regular monthly payment if the person insured dies within the term of the plan. 

 

The amount of the monthly payment is set from the outset of the plan. This would normally be the income your family would need to be financially stable should you pass away. The payments will continue for the remaining term of the plan. For example if you passed away after 10 years of a 30 year term, the plan will continue to payment out for the next 20 years.

Family income benefit is generally seen as the most budget-friendly form of life insurance available.

 

This is because the insurer is less likely to have to pay out a significant sum, and even if they do they won’t need to pay it all in one go.

Before you take out a family income benefit plan, you should consider: 

 

  • How much income your dependants will need? You should consider possible future family living costs as well as your current outgoings.
  • How long you want the cover to last? Often, people will choose the policy term to run until their children are financially independent.
  • Frequency of pay-outs. When setting up the plan you will need to decide whether you would like your family to receive a regular monthly income, or a lump sum payment 

Yes, it’s possible for family income benefit to be written in trust.

 

This can ensure that any pay-out is kept separate from the rest of your estate. This should allow your beneficiaries to receive the payment sooner, as it avoids the probate process, and won’t be subject to inheritance tax.

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