Life insurance is a product which most people don’t think about until they encounter a significant life event. That could be buying a house, getting married, having a child or even suffering a health scare. Until something significant happens, you’ve probably not considered whether your life is worth insuring.
When you get a life insurance quote from PayingTooMuch.com, you’re presented with the following products. Let’s examine each one individually:
Standard Life Insurance
New Home Owners
Life insurance is often a requirement for getting a mortgage. If you’re responsible for supporting a family, you wouldn’t want them saddled with the responsibility of paying a mortgage should the worst happen.
“To repay my capital payment mortgage if I die” - If you have a capital payment mortgage, the capital outstanding on your mortgage should decrease each month. Therefore, the level of life cover you will need to cover the mortgage should decrease each month too. When your mortgage is fully paid, the life insurance cover will end. This type of life insurance may also be called ‘Mortgage Protection’.
“To repay my interest only mortgage if I die” – With an interest only mortgage, the value of your mortgage remains the same as you aren’t repaying any of the loan. Therefore, the level of life cover needs to remain the same. When the mortgage finishes, the life cover will also finish. This type of life insurance may also be called ‘Level Term Insurance’.
Personal reasons
You may want to take life insurance for any number of reasons. For example, you may wish to provide support for your children through school or university should you die. Or it could be something as simple as covering a large loan you took out for a car or educational needs. Get a simple quote online, or call 01243 784000 to discuss your needs.
Guaranteed Over 50s Life Insurance
If you’re over 50, you could struggle to get standard life insurance on health grounds. You may also only need a small amount of money to cover the cost of a funeral and any outstanding debts.
With Guaranteed Over 50s Life Insurance there’s no medical questions or an examination required and you’re guaranteed to be accepted. Providing you pay the premiums each month, your payment is guaranteed. It’s that simple.
Compare prices and terms for Guaranteed Over 50s Life Insurance here.
Whole Of Life Assurance
The word "assurance" is used for policies that are guaranteed to pay-out provided the premiums are paid. When the word insurance is used for policies, they will only pay-out only in certain circumstances. If you outlive the length of the policy, there is no pay-out.
A large proportion of customers we speak to prefer Whole Of Life products because they provide an assurance of a pay-out, no matter how long they live.
As the premium is calculated not just on the amount of cover, but also on the term of the cover and the likelihood it will be paid out, expect premiums to be higher than Term Insurance.
Uses of Whole Of Life Assurance could include providing a lump sum for your loved ones on your death, paying an Inheritance Tax bill on your death or providing funds to pay off loans or for your funeral.
Compare prices and terms for Whole Of Life Assurance here.
Additional Products
BRAND NEW: Later Life Option
Combatting the problem of “I’ll never actually see the benefit” often associated with life insurance, Zurich have introduced a ‘Later-life flexible option’ on their Zurich Adaptive Life Plan.
Under the plan, you can claim a reduced cash sum equal to 70% of the life cover instead of claiming the full benefit on death, provided you are over 70 years old and are suffering from illness, accident or infirmity which leaves you unable to perform everyday duties.
To find out more on this excellent option, see our recent blog post or call our Life Insurance team on 01243 784000.
Critical Illness Cover
Critical Illness Cover can be added to most life policies. This means that you’ll get a pay out from your policy, whilst you’re still alive, if you suffer an eligible critical illness.
For example, if you’re diagnosed with testicular cancer, some insurers would pay out an additional benefit on diagnosis which doesn’t reduce the final death or critical illness claim.
If you buy £100,000 of critical illness insurance with AIG and are then diagnosed with Testicular Cancer, your insurer would pay-out £12,500 on diagnosis. If you pass away of natural causes 10 years later, AIG would then pay-out the full sum assured of £100,000.
One or two policies?
If you’re thinking of arranging cover for yourself AND your significant other, you need to consider whether one joint policy, or two single policies, is best for you. For more information, see our recent blog post entitled “When two life policies can be better than one” or call our Life Insurance team on 01243 784000.
