Life & Critical
No one likes to think of the worst case scenario. We all like to live for today, and let tomorrow look after itself. The problem is, life is not like this!
All of us have had some kind of personal loss, or experienced, either directly or indirectly, the effects of unexpected critical illness or sudden death.
Father to a young child myself, I understand the importance of working with you to make appropriate provision for you and your family, to avoid the personal and financial hardships that can often follow this kind of trauma.
Most people have some sort of minimal cover, perhaps just enough to pay-off the mortgage or credit card debt, yet many of us forget the real priorities we have, the ones we leave behind.
As an Insurance Broker with many years experience, I understand just how hard it can be to claim when you’ve lost a loved one, this is why I make sure I am readily available 24/7 to help you during this terrible time.
Already have Life Insurance?
If you could have the exact same cover, even with the same provider, but up to 50% cheaper, would you be interested? Of course you would. So, because of the recent housing market collapse due to the recession, Life Insurance and Critical Illness premiums have dropped considerably in recent months. This means you can literally save 100s of pounds renewing your existing insurance.
I will help you to audit any existing arrangements – making sure that they still represent the best blend of protection and value – and augment or alter your cover as required.
Why do I need life insurance?
Coming to terms with the loss of a loved one is never an easy thing to do and adding financial burden to the grief can make coping increasingly difficult. It can help to support your family after you die, or even a business partner.
Among the reasons to take out life insurance could include:
Mortgage repayments – do you wish to arrange for your mortgage to be paid off?
Replacing the primary earner’s salary – ensuring the family does not fall on hard times after your death.
Replacing childcare – the death of the primary childcare provider could lead to the need for childcare expenses.
Education expenses – cover for school/university fees after the death of the primary earner.
Whether it’s about leaving your debts behind or ensuring your family can maintain the standard of living to which they were accustomed, it’s clear there are plenty of reasons to look for the best life insurance policy for your personal circumstances. Getting the best quote is an important part of finding the right policy.
Different types of life cover.
Life insurance (also known as ‘life assurance’ or ‘term assurance’) is a policy that pays out a lump sum in the event of the policyholder’s death, with the purpose of protecting loved ones and dependents against financial hardship.
Life insurance is usually available on a single or joint life basis with benefits including paying out on the diagnosis of a terminal illness. If the policyholder is alive when the policy expires no payment is made and, should the policyholder stops paying premiums at any stage, the policy has no value.
There are several types of life insurance:
Level term insurance – designed to pay out a sum of money if the policyholder should die during the policy’s term. The sum assured is guaranteed and remains unchanged throughout the term.
Decreasing term life insurance i.e. mortgage protection cover – where the sum decreases during the policy. It is regularly used to protect capital and interest repayments on a mortgage.
Renewable term insurance – On the expiry date there is an option to continue without a health review.
Increasing term insurance – Due to inflation the value of money declines each year. Consequently, this form of insurance combats that with an escalating sum assured.
Index linked term insurance – Some insurers provide the option for the premium to be increased each year in relation to the Retail Price Index.
Taking a risk
Life insurance is based on probability. Though unforeseen circumstances can cut life short, generally people will fulfill an average life expectancy and it is on this theory that life insurance companies can invest earnings and collect interest. However, for certain groups that probability is reduced and as such they are considered to be of a greater risk for life insurance companies.
This could lead to higher premiums and, in some cases, even exclusions. Some of these greater risk groups include:
High-risk occupations – For example people who work at great heights, the oil and gas industry (especially offshore), the Armed Forces, pilots, fishermen.
Dangerous sports/hobbies – People who take part in such pastimes can be considered a greater life insurance risk. These could include aviation, climbing and mountaineering, motor sports, parachuting, bungee-jumping and even skiing, snowboarding or horse riding.
Poor medical history – People with an existing medical condition are considered a greater risk. Examples could include family history, weight issues, bowel conditions, cancer, high blood pressure, etc.
Smokers – Smokers are considered a greater risk than non-smokers due to proven links between smoking and some cancers (such as lung and throat cancer) and other serious and terminal diseases. Premiums for both life insurance and critical illness cover increase substantially as a result.
Over 60s – Any ten-year life insurance policy that takes you past the age of 70 would require advice from a regulated advisor with full FPC qualifications.
Bear in mind definitions of high risk occupations, dangerous sports/hobbies and poor medical history can vary from insurer to insurer.
Consequently, it is important to consider as many life insurance quotes as possible to find the best deal for you. It is also vital to disclose any information which may affect your risk rating because any omitted information can threaten any claim you make in the future.
Saving money
As a broker for the UK’s largest Provider of Life Insurance, I have access to reduced rates that only Eunisure have access to. Not only that, we will also compare more than 100 insurance products to find the policy that best suits your needs, this means that I can find you a cheaper quote then most comparison websites, banks and Building Societies. There are other ways to save money too, here are some important elements to look out for:
‘Written in Trust’ – If your policy is written in trust then in the event of a claim this means that the money goes directly to the person you nominate. It also avoids your estate paying inheritance tax which could mean a 40% tax saving.
Joint life insurance – This is normally written on a first death basis, meaning the policy pays out on the death of the first policyholder. It will save money but bear in mind that it will leave the second policyholder to potentially try and get a new life insurance policy at an affordable premium in old age. Overall it will work out to be more expensive in those circumstances.
Critical illness – A life insurance policy with critical illness cover will work out much cheaper than two separate policies. Also remember to differentiate between critical illness and terminal illness cover. Most policies will automatically include terminal illness cover but the critical illness policy will pay out the lump sum for a range of illnesses with no life expectancy criteria.
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