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Contains all the basic information regarding our insurance products but remember, don't hesitate to call one of our advisers if you need some further help. 0800 542 4060
1. What type of product do I require?
Term Assurance.
Level Term Assurance is the most basic type of life assurance. For fixed monthly payments, the amount of life cover - also known as the sum assured - is guaranteed for a fixed term. The fixed lump sum amount is paid out if a claim is made during the term.
Mortgage Protection Insurance.
With Mortgage Protection Insurance also known as Decreasing Term Assurance you pay a fixed monthly premium but instead of the cover remaining level, it gradually reduces over the term of the policy. It is most commonly used together with a repayment mortgage and the sum assured reduces broadly in line with the amount outstanding on the mortgage over the term. The reducing cover means that the cost of this type of policy is lower than that of Level Term Assurance.
Family Income Benefit Insurance.
Rather than paying out a lump sum should you claim during the selected term, a Family Income Benefit policy pays out a regular tax-free income for your dependants for the remainder of the plan term. The amount of income benefit usually remains level over the plan term selected, although you can request that benefits increase in line with inflation as an optional extra. As an example, if you select a £15000 per annum family income benefit plan over 25 years, and die at the end of year 10, then your dependants will receive £15,000.00 every year for the remainder of the term i.e. 15 years (£225,000.00 in total).
2. Benefit Types
Death Benefit Only.
A payment of a lump sum upon the death of the life assured
Critical Illness Only.
Also known as 'dread disease' cover. Such policies can be stand alone or written as an add-on to term assurance. It will pay out a lump sum on diagnosis of a qualifying illness. E.g. certain cancers, heart disease, stroke, multiple sclerosis, brain tumours, etc. (List available on request).
Death or Earlier Critical Illness.
Pays out a lump sum, so that the life assured is protected for both death and/or critical illness. The policy pays out on the first event and then ceases.
3. Who is the cover for?
Self.
If you choose yourself to be covered, only you will be covered.
Self and Partner. (Joint Life)
If you choose yourself and a partner, both will be covered but the policy will only pay out once. This would be when either life assured needs to make a claim on the insurance. The plan will then end and no further benefit will be paid.
4. Benefit Amount
This is the amount you would like to be payable on death or earlier critical illness.
There are various methods used to calculate the amount of life & critical illness insurance needed, however, as a guide, we would generally recommend: -
For family protection that a sum assured is equal to 10 x your annual salary, plus all outstanding liabilities, minus any existing life & critical illness insurance, savings etc.
If the cover is required for a mortgage, then the amount of mortgage outstanding.
5. Term in years?
Specify the number of years you want to be covered for. This could be until your dependants are old enough to fend for themselves or the mortgage is paid off.
6. Premium Frequency
Monthly
You can choose to pay your insurance premiums on a monthly basis by direct debit. This is the most commonly chosen payment option.
Annually
Paying your insurance premiums on an annual basis may be right for you. You can pay annually by direct debit or by cheque.
7. Waiver of premium cover?
Spending a small extra amount on waiver of premium cover means that you have the comfort of knowing that your premium payments will continue to be made in the event of long term ill health either through sickness or an accident. After a specified deferred period i.e. 13, 26 or 52 weeks, the premiums will continue to be paid by the Insurance Company until: -
- The plan term ends
- The person covered dies
- Disability ends or
- The cash sum is paid on diagnosis of a terminal or critical illness (if chosen)
8. Why do we need your telephone number?
We may need your telephone number to discuss the detail of your Insurance requirements. Under no circumstances will this be disclosed to any third party.
9. I used to smoke but I gave up - am I classed as a smoker or non-smoker?
As a general rule, if you have not used any tobacco products within the last 12 months the life insurance provider will consider you a non-smoker. Insurance rates for smokers are generally higher then for non-smokers. |
