Life Insurance and Mortgage Protection

What is the difference between level and decreasing life insurance?

Level Term Insurance - is life assurance that pays out a set amount if you die within the term of the policy.

Level Term Assurance is usually used to cover fixed repayment values; for example, an interest only mortgage where the amount you owe remains the same until the end of the mortgage, or to provide a sum to your family to help support them until they can become financially independent without you.

When a term assurance policy expires, it has no value. This means that if you do not die within the term, you will not receive any money back.

What is mortgage protection?

Mortgage Protection is the same as decreasing life insurance.

What are guaranteed and reviewable premiums?

Guaranteed: Premiums will remain the same for the entire plan term (unless you have selected the 'indexation' option).

Reviewable: Premiums are 'reviewed' (and usually increased) at regular intervals (generally every 5 years) by the insurer as stated on the detailed quotation or in the Key Features document.

What is wavier of premiums?

Taking this option means that if you are unable to work for at least 6 months then after this time the insurer will pay the premiums for you to maintain your cover for the remainder of your time off work.
This option only adds a small amount to the cost of your policy.

What is indexation?

This option means the sum assured and premiums will increase each year. This helps protect the benefits against the effects of inflation.

Am I classed as a smoker?

You are classed as a smoker is you have smoked within the last 12 months. If you have given up smoking within that time, you are still classed as a smoker. Once you have stopped smoking for 12 months, you can then inform your insurance company and you premiums will be adjusted accordingly (normally reduces your premiums)

How much cover do I need?

When deciding on your level of cover you need to think about your financial details such as your mortgage, utility bills, loans, school fees, how much your partner would need if you were to die. If you would like to talk to one of our advisers please feel free to call 0844 288 2888 and we will be happy to help.

What is term? How long do I need?

Term is the length of your policy. How long will your family be dependent on you? How long is your mortgage? If you would like to talk to one of our advisers please call 0844 288 2888 and we will be happy to help/

Critical Illness

What is critical illness cover?

Critical Illness Cover is assurance that pays out if you are diagnosed with an illness specified within the policy. It is designed to help you adapt if your life is changed by an illness.

Critical Illness cover is not designed as a replacement for your income.

What is classed as a critical illness?

The illnesses covered by each policy will differ, so it is important to read the full details of the plan you are considering. The following illnesses are typical:

• Blindness – permanent and irreversible;
• Cancer – excluding less advanced cases;
• Coma – resulting in permanent symptoms;
• Deafness – permanent and irreversible;
• Heart Attack – of specified severity;
• Kidney Failure – requiring dialysis;
• Stroke – resulting in permanent symptoms.

Insurers may also exclude some illnesses because you already have them, or are likely to get them because of your health or lifestyle. The premiums are often reviewable, meaning they may change during the term of the policy; although, some providers offer fixed premiums that are guaranteed not to change.

How much critical illness do I need?

When deciding on your level of cover you need to think about your financial details such as your mortgage, utility bills, loans, school fees, how much your partner would need if you were to die. If you would like to talk to one of our advisers please feel free to call 0844 288 2888 and we will be happy to help.

Are my children covered on my policy?

Some insurers insure for up to 25% of the sum assured to cover children in the event of their critical illness. If you require further information as to which providers offer this please call us on 0844 288 2888.

Income Protection

What is income protection?

Income protection is designed to pay an income in the event of long term illness or incapacity, resulting in your inability to continue to earn income as a self employed person or as an employee of a company. The plan will pay out after a selected deferred period which can range from 1 day to 12 months.

How much do I need?

Subject to your age health and occupation ad deferred period, we can tailor make a specific policy to your individual needs. For further information please call 0844 288 2888 and we will be happy to help.

What is deferred period?

A deferred period is the waiting tome before the benefit is paid out by the insurance company. This can range from 1 day to 12 months. For example a self employed person may have to select a shorter deferred period e.g. 1 month and employed may have the benefit of sickness pay for 6 months.

How long will it pay out for?

The policy will continue to pay out until the selected age you entered at the beginning of the policy.

You will need to continue to provide evidence of illness.

Trust

What is a trust?

You can insure that the policy proceeds are paid via the trustees to the indented beneficiaries

The policy is normally outside the person’s estate for Inheritance Tax purposes.

The proceeds of the policy when in trust can be paid more rapidly to the beneficiaries as the policy is legally owned by the trustees and will not have to go through probate procedures.

Beneficiaries – to whom you want to the policy to be paid out to e.g. children, wife, girlfriend, boyfriend, business partner.