Life Insurance
Life insurance can provide money for the people you leave behind if you die while covered. It may help with a mortgage, household spending or other commitments, but the amount and period of cover need to reflect the support they would need.
Some policies last for a chosen term; others are designed to continue for life. We’ll explain those differences, the premiums and the conditions that apply. Term cover normally has no payout if you survive the policy term.
The cover reduces over a chosen term and can broadly follow a repayment mortgage or loan. It pays on a valid death claim during that term. Check that its reducing amount remains suitable for the debt; it does not automatically track your actual balance.
The amount of cover stays fixed for a chosen period. It can provide a lump sum for family needs or an interest-only mortgage after a valid claim. The fixed amount will not automatically rise with living costs, and cover ends when the term finishes.
Some term policies include an option to convert to another life policy, potentially without further medical questions. The permitted policy types, deadline and new premiums depend on the insurer. Conversion is not an unrestricted right to any amount or type of cover.
Designed to continue for life, provided the required premiums are paid and the policy remains valid. Some policies have reviewable premiums or benefits. Consider whether you could maintain the payments over time, not just whether the initial premium is affordable.
Consider both immediate costs and the income your household would lose. A mortgage balance is one part of that picture; childcare and unpaid caring work can also have a financial value. Think about how long someone may depend on that support, and take existing savings and death-in-service benefits into account without assuming they will always stay the same.
Who owns the policy and how its proceeds reach the intended beneficiaries matter too. A trust may be appropriate in some circumstances, but its legal and tax effects need proper consideration. Tell the insurer accurately about the information it requests. If you are replacing cover, do not cancel the old policy before understanding and putting the replacement in place.
We’ll discuss your circumstances, existing cover and budget, including the people or commitments you want the insurance to support.
We’ll explain the recommended policy, its premiums, benefits and important limitations, so you can consider what it would and would not cover.
If you choose to proceed, the insurer assesses the application. Check the terms offered and the confirmed start date before relying on cover.
No. A joint first-death policy normally pays once and then ends, whereas two single policies cover two lives separately. The right comparison includes the benefit structure and what happens after a claim, not just the combined price. Check the actual policy terms.
Check the amount, who can receive it and when the benefit ends. Employer cover can be useful, but leaving a job may remove it. It should be considered alongside your own commitments and any personal policy, rather than automatically ignored or assumed sufficient.
Family Income Benefit is a form of term life cover that can provide regular payments for the remaining policy term after a valid claim. It differs from a lump sum and from income protection, which concerns your own inability to work through illness or injury.
Cover, exclusions and claim conditions vary. Keep up the required premiums to maintain your cover.
