A life insurance policy is essential to offer financial protection to your dependents that rely on you for financial support. So in the event that you die or suffer a major illness, your plan will pay out a big lump sum, which can go towards maintaining your family’s lifestyle such as mortgage payments, food, healthcare, education and more.
Individuals can choose the term of their policy, whether it is just for 15 to 20 years or their entire lifetime.
If you suffer a critical illness or pass away, the claim will be paid in full and then the policy will end there and then. However, if you stop paying premiums or live to the end of your policy, there is ‘no cash in value’ so you will not get any refund or any cash in return.
Where you will receive a one lump sum payout if you are diagnosed with a terminal illness. For more information, see income protection cover.
If you have suffered an illness or become disabled and your claim has been fully paid; all future insurance premiums will be waived as part of the claim.
You will receive a payout if you contract a serious illness or disease, lose your sight, hearing or a limb that prevents you from carrying out your work.
You can change your cover if your circumstances change e.g. change in income, moving house, have more children etc.
With access to several companies, they will research the market and do a full comparison to find the best rate for you – ensuring you can protect your partner, family and any other dependents.
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Assured Futures will help you to find life insurance, they offer a fantastic, personal service. They will research the market, find you the best policy and price and give you quality independent advice.
You can choose to increase or decrease your cover during the policy term. If the cost of living and supporting your family increases, you may wish to pay for increasing cover. For instance, if you buy a bigger home or have more children, you will need to pay for extra cover. Or perhaps the cost of living in your area simply increases; your policy can reflect that according to the Consumer Price Index.
Some prefer to have a decreasing term insurance, where the amount you pay for your life insurance premium reduces over the years – and it is common to do this in line with your mortgage repayments. Furthermore, as you get older, your children become self-sufficient and you may not have to provide for them any longer – so a much lower amount of cover is required.
Term life insurance means that you take out a policy for a certain number of years e.g. 5, 10 or 20.
This is obviously a cheaper option when compared to a policy that lasts a lifetime. For elderly customers, they may wish to only pay for a plan that lasts a certain number of years and might feel that with fewer dependants they have enough saved up to provide financial support to their spouse or partner.
A whole life insurance policy will last for your entire lifetime and will never run out. So you do not have to worry about renewing every few years like with a term life insurance policy and you can be assured that you and your family is protected financially.
A life insurance premium and costs are based on the following factors:
The best practice is buy life insurance when you are younger because in your 20s, you are considered healthier and very low risk of making a claim – so your premium should be very low.
So as soon as you get older and have a history of health issues, you become a bigger risk to insurers and your premium reflects this.
Naturally, the longer you want cover for, the more expensive your premium will be; you pay lower amounts, just for longer. Also, the need for more cover will be reflected in the cost as someone with several dependants and a property to maintain will require more cover than someone without.
Smokers are considered a much higher risk to insurers because smoking related diseases will increase the need to claim and take time off work.
Example: A 45 year-old smoker with three children will pay more for life insurance compared to a 25 year-old non-smoker without children.