Life insurance, critical illness cover are a common way to provide adequate financial security for you and your family.
Life insurance
Basic life insurance can provide a specified lump sum if the insured person dies during the policy’s specified term. Life insurance can be used to ensure the repayment of your mortgage or other debts. Additional options are available, such as waiver of premium and guaranteed premiums.
“As with all insurance policies, conditions and exclusions will apply.”
Critical illness cover
Critical illness cover provides a specified lump sum if the insured person or persons are diagnosed with one of the many specified critical illnesses during the policy’s term. It is a more comprehensive form of life cover, offering financial security for the insured during their recovery. Unlike basic life insurance, which only provides a specific amount upon the death of the insured, critical illness cover supports the insured in times of serious health challenges.
“As with all insurance policies, conditions and exclusions will apply.”
Terminal illness cover
Terminal illness cover is different from critical illness cover, and it is sometimes confused with it. This type of cover provides an early life insurance payment when recovery from a critical illness is not expected, typically during the last year of the insured person’s life.
Life insurance first timer
Getting life insurance for the first time can seem daunting. Having to think about something as significant as how your loved ones will cope financially once you are no longer here can be quite overwhelming. We’re here to help break things down and help you make the right decision for your unique needs.
Help when it’s needed
For some, especially young people, taking out life insurance might not be something you have ever thought about seriously. Life insurance is a crucial safety net designed to protect your loved ones in case the worst happens. Sadly, many families would find themselves running short of money very quickly if the main breadwinner were to die unexpectedly.
Receiving a payout from a life insurance policy can be the difference between your loved ones facing a financial struggle at a challenging time and being able to maintain their same standard of living.
What you need to consider
There can be a lot to think about when it comes to choosing the right life insurance policy. Here are four key questions you might be asking:
How much cover do I need?
There’s no one-size-fits-all approach to life insurance. In deciding how much cover you need, consider your existing and future financial obligations, including mortgage and any other debts you may have. Think too about how much income your loved ones might need if you were to pass away.
What policy type should I pick?
There are two main types of policy:
• Term life insurance policies run for a fixed period of time, e.g. 10 or 25 years and pay out if you die during the term of the policy.
• Whole-of-life policies provide cover that lasts a lifetime. This type of policy doesn’t normally have an end date, so premiums are paid until you die
How much will it cost?
Every policy is different so there’s no definitive answer! But, with products starting from a few pounds a month, there is a policy for every budget. It’s a very small price to pay for the safety net of knowing that your loved ones won’t suffer financial hardship.
Should I stretch the truth on my application?
In a word – no! When applying for life insurance, it is important to be honest about your health and lifestyle habits. If you provide any information that later turns out to be misleading, this could result in your policy being cancelled or your claim being denied.
Don’t do it alone
Sorting out the right life insurance cover can seem a formidable task. When the stakes are so high, it’s a good idea to get advice from an expert – we’re here to help.
Income Protection
Income protection insurance pays you a regular income if you are unable to work because of sickness or disability. These payments continue until you return to paid work or you retire. Income protection insurance is also known as permanent health insurance.
The amount of income you can claim will not replace the exact amount of money you were earning before you had to stop work. The calculations are done based on around half to two- thirds of your gross earnings from your normal job. This is because some money will be taken off for the state benefits you can claim, and the income you get from the policy is tax free.
Your policy documents will confirm how much you can expect to receive.
You cannot claim income protection payments straightaway when you fall ill or become disabled. You usually must wait a minimum of four weeks, but payments can start up to two years after you stop work. The period will depend on the premium and terms you agree when taking out the policy.
This is because you may not need the money straightaway as you may get sick pay from your employer, or you may be able to claim statutory sick pay for up to 28 weeks after you stop work. This is called a deferment period. If your situation changes then your adviser can usually arrange cover with a different deferment period.
The amount of benefit and the deferment period will be stated in your policy documents, and you should check regularly to ensure this meets your ongoing requirements.