Life Insurance

Life Insurance

Do you need life insurance? If your children, partner or other relatives depend on your income to cover the mortgage or other living expenses, then the answer is probably yes, since it will help provide for your family in the event of your death. As a specialist Life Insurance Adviser, we can help you determine what kind of cover you need and help you source a competitive premium. Read on for more information or visit the FAQ section below.

What is It?


An insurance that is designed to pay a tax-free lump sum or income to your dependents if you die.


How Does It Work?


You choose the amount paid out – the larger the amount, the higher the Cost of the premium. Term life insurance lasts for the period you choose and pays a fixed sum if you die in the policy term. Whole of life insurance lasts until you die, but this is likely to cost more. You can have a single or joint policy with another person.

Close-up of hand of infant holding adult hand representing family care

Why Might I Need It?


To provide financial support to your dependents if you die unexpectedly so they can pay off mortgages and loans or pay the bills.


Are there different types of Life Insurance?


Yes. There are a number of variations. Here are a few key types of Life Insurance cover:


  • Level Term Insurance - Usually the term, sum insured and premium are all agreed up front and will not change during the policy term.
  • Decreasing Term Insurance - Often called Mortgage Protection Insurance, this cover tends to cost less than Level Term Insurance. The premium stays level but the sum insured declines over time, usually to follow the pattern of the reducing balance of a Capital & Interest Repayment mortgage.
  • Whole of Life Insurance - Unlike Term Insurances, Whole of Life Insurance has no end date and will pay out on death at any time as long as the premium is still being paid. This tends to be more expensive than Term Insurance but has the greatest likelihood of a claim being made.


Which type of Life Insurance is going to be best for you will depend on your circumstances. By consulting a Life Insurance Adviser, you will get expert guidance on how to get the best type of insurance for your needs and within your budget.


How Much Does Life Insurance Cost?


Life Insurance companies will each have their own minimum level but life insurance cover starts at around £5 or £6 a month with many providers. How much it will cost in each case will depend on some key information including:


  • Your age
  • The sum insured (pay-out amount) selected
  • How long you want the cover to last
  • Whether you smoke
  • Your health


Can I get Cover if I have Pre-Existing Health Conditions?


Most people will accumulate medical conditions in their lifetime. Depending on the nature and severity of the health issue, you will still likely be able to get life insurance cover. Insurance companies usually will provide an initial quote for a "normal terms" premium, based on an applicant who is in good health for their age. When you apply for cover they will ask about your health and family medical history and this will influence whether you will be offered cover at the normal premium or one which is slightly higher.


When you ask us to help you obtain life insurance cover, we use powerful research tools and our extensive experience to identify which providers are likely to provide you with cover at a competitive premium, based on your personal circumstances and medical history.


How is a Claim Made?


The policy pays out if you die, or in some cases, get an illness which you are not expected to survive for more than 12 months.


Contact us for advice and no obligation quotations.


Value-Added Benefits



Many modern life insurance policies include valuable added benefits for minimal or even no additional cost. Examples of these supplementary benefits include:


  • Remote GP services. Consultations with a UK doctor available by phone or video.
  • Prescription services. Private prescriptions as recommended by a remote GP service.
  • Free Annual Health Check
  • Private Diagnostics. Access non-invasive diagnostic testing for certain medical issues.
  • Second opinion. Check a diagnosis and get advice on treatment options with a UK medical specialist.
  • Mental health support helpline.


Each provider will have their own suite of value-added benefits. Some companies offer these free, others may make a small charge. Let us know any features that particularly interest you and we will make this part of our research and recommendation.

Frequently asked question graphiic

LIFE INSURANCE FAQ

Here are some common questions asked about Life Insurance. Got a question that is not covered? Send it to us and we will answer it for you and maybe add it to the list below.

  • Why use an Independent Financial Adviser for Life Insurance, rather than a comparison site?

    A qualified Independent Financial Adviser who specialises in life insurance can be by far the best way to find the right policy for you, and the most affordable one too. Price comparison sites are an increasingly popular way to buy insurance of all kinds but with life insurance it is advisable to take a little more care. The loss of a close family member is one of the biggest upheavals a person can face, and is the worst possible time for any financial insecurity or uncertainty. 


    Additionally, unlike house or car insurance, life insurance is a long-term contract spanning years or even decades. Making sure the policy will provide the cover and flexibility you need is vital. Although affordable premiums are very important there are other vital factors to consider. For example, should you include "Waiver of Premium?" What is the right policy term? Are premiums "guaranteed" or "reviewable?" Is there an option to increase cover in future if circumstances change? 


    Increasingly, life policies also provide "value-added" benefits like remote GP services and annual health-checks. A good adviser will help you to work out if any of these services are of value to you and which providers offer the services you need.


    We also recommend you choose a "whole of market" adviser, such as Money in Person. This will make sure that you will have access to the widest possible range of products and options to meet your requirements.

  • Can I get life insurance with a pre-existing medical condition?

    Often, you can, but it might cost more. An insurance provider may view you as at higher risk of making a claim. The number of providers willing to cover you could also be limited.


    However, life insurance applications are assessed on a case-by-case basis, so getting covered will depend on your specific circumstances. Some pre-existing conditions might not make that much difference to how much you pay for life insurance, whereas more serious conditions like heart disease or cancer could make it a lot harder to get a competitive price.


    As not all insurance providers take the same view of pre-existing medical conditions, we will undertake extensive research to establish which providers are likely to provide cover and on what terms. There is no additional cost to you for providing this service.

  • What are the key types of life cover?

    The key types of life cover include:

    • Term insurance - gives you life cover during a pre-agreed period of time 
    • Critical illness - gives you cover for specific medical conditions
    • Over-50 plans - gives you cover towards funeral costs, paying debts or if you want to leave some money to loved ones if you die. See our dedicated page for this cover.
    • Whole of life plans (also known as life assurance) - gives you cover for your entire life; it can meet your debts or be left to a loved one when you die

  • What are some reasons why someone may take our life cover?

    There are many reasons to take out life cover but some of the main ones include:

    • getting married
    • buying a house
    • starting a new job
    • applying for a mortgage or loan
    • the birth of a child  

  • My Life Insurance policy includes Terminal Illness cover. Is that the same as Critical Illness cover?

    A terminal illness is generally classed as one which doctors believe  is expected to lead to death within 12 months. Many Life Insurance policies include Terminal Illness cover as standard.


    On the other hand, a Critical Illness is one of a number of specified conditions which are likely to be life-changing  but not necessarily terminal. Heart attack, stroke and cancer are examples of illnesses which may be paid out with a Critical Illness policy even though the person may go on to make a good recovery.

  • Will my policy actually pay out if I die? What proportion of claims are successful?

    According to the Association of British Insurers, 97.3% of life insurance claims were accepted in 2021. The main reason behind the tiny proportion of claims rejected was ‘non-disclosure’. This is when a customer doesn’t tell their insurer something at the outset that might have affected the insurer’s decision to provide cover and the price of that cover.

  • How do life insurance companies decide if I am a smoker?

    Although this seems a clear-cut question, there are subtle differences between life insurance providers that can make a significant difference to whether you are accepted and how much you pay.

     

    Generally speaking, anyone that has smoked a cigarette, cigar, pipe, or used any nicotine replacement devices including e-cigarettes, patches or even gums within the past 12 months will be considered a ‘smoker’ when it comes to insurance rates. 


    After this period, some insurers will charge ex-smokers the same standard rate as anyone else. However, others will still increase their premiums for ex-smokers for up to five years after they have quit.


    There are other exceptions to these rules. For example, one insurance company allows individuals to smoke up to 12 cigars a year while still charging non-smoker rates. Finding and navigating your way through all these differences can be a challenge. 


    An Independent Financial Adviser can help you find the insurance that is best for you. They stay up to date with changes in how life insurance providers classify different medical conditions. If you would like to see if you are eligible for life insurance, feel free to contact us for more information.


  • Is vaping treated the same as smoking for life insurance?

    Different insurers have different criteria when it comes to how they classify vaping and e-cigarettes.


    Some insurers classify vaping the same as they would smoking and increase the premiums. Meanwhile, others can offer standard rates for those who only vape non-nicotine products.


    An Independent Financial Adviser can help you find the insurance that is best for you. They stay up to date with changes in how life insurance providers classify different medical conditions. If you would like to see if you are eligible for life insurance, feel free to contact us for a free initial meeting and quote.more information.


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