What is it? Why should I have it?
If you have a mortgage or a family then you may want to be sure that they are taken care of should you no longer be around. Life insurance is cover that will protect your family should you die, by providing a lump sum payment.
Some people don’t like to think about death, but for many others planning for the future is vitally important.
Life insurance in more detail
Life insurance policies cover a term set by you from the outset, this would normally be in line with the remaining term on your mortgage, for example.
Policies can also have many different variables and added benefits depending on the provider selected. This can range from guaranteed premiums, so that you know your monthly payments will not increase through the term of the policy, to a waiver of premiums, which means that if you are unable to work for a period of time the provider will take over the payments of your policy so that it doesn’t lapse, meaning you would be unprotected. Other considerations are things like terminal illness cover that will pay out in full should you contract a terminal illness; this means you will receive the payment and would know that your wishes are taken care of or potentially complete those bucket list items you’ve always wanted to.
Life cover can be linked to a mortgage and could be provided on a decreasing term basis, this means that it will decrease in line with the mortgage if you have it on a capital repayment basis so that by the end of the term your policy will lapse but there is also no longer a mortgage amount that needs to be cover.
Alternative arrangements to this could be level term cover so that the amount to be paid out would not change through the term of the policy, which is ideal for an interest only mortgage, for example. There is also an option to have the policy index linked which means it will go up each year in line with the Retail Prices Index (RPI) to keep up with inflation, the monthly premium in this scenario may also rise so this needs to be considered when taking this option.
Additional benefits and services available
Many insurance providers now offer a range of value-added benefits which are available to clients when taking out a policy and is normally free of charge. These benefits can include:
· Unlimited access to a 24/7 GP service
· Prescription services – Private prescriptions without needing to visit your own GP.
· Second opinion services – Making sure a diagnosis that may have been given is accurate and get further advice on treatment options.
· Physiotherapy
· Psychological support and/or counselling services for mental health support
· Discounted health MOT’s or health check ups
· Bereavement support services
· Nutritional consultations
· Gym discounts and many more
The value-added benefits will be considered on a case-by-case basis for each client by your adviser when looking at your particular set of needs and circumstances.
In addition to life insurance, we can consider other complimentary protection policies alongside this like, critical illness cover, income protection and family income benefit. We cover these other types of policy in more detail in other blogs, you can find further information here.
If you would like further information or would like to discuss your requirements for cover we would be happy to have a chat to see how we can help you further. Do not hesitate to get in touch with an adviser today.
