It’s not easy to think about how you would secure your family’s future if you were no longer around. Understandably, we would rather not think about this, but it’s important to protect the things that really matter – like our loved ones, home and lifestyle – in case the unexpected happens.
- Our independent financial advisers will take you through a step by step process to understand what type and amount of cover you will need for your circumstances.
- They will explain the cover proposed in jargon-free language.
- Our independence allows us to research and source the right product for your needs from the whole marketplace and our advisers will manage your application from beginning to end.
What is life insurance?
Life Insurance provides a safety net for your family and loved ones if you die, helping them cope financially during a difficult time. Ultimately it offers reassurance that your family would be protected financially if the worst was to happen.
So whether you’re looking to provide a financial safety net for your loved ones, moving house or a first-time buyer looking to arrange your mortgage life insurance – or simply wanting to add some cover to what you’ve already got – you’ll want to make sure you choose the right type of cover.
That’s why obtaining the right professional advice and knowing which products to choose – including the most suitable sum assured, premium, terms and payment provisions – is essential.
Do you need Life Insurance?
It may be the case that not everyone needs life insurance (also known as ‘life cover’ and ‘death cover’). But if your spouse and children, partner, or other relatives depend on your income to cover the mortgage or other living expenses, then it will be something you need to consider. Times to consider life insurance include:
- Buying your first home with a partner
- Covering loans
- Getting married or entering into a registered civil partnership
- Starting a family
- Becoming a stay-at-home parent
- Having more children
- Moving to a bigger property
- Salary increases
- Changing your job
- Reaching retirement
- Relying on someone else to support you
- Personal guarantee for business loans
You might like to try our risk calculator. This calculator identifies the percentage chance of you being unable work for two months of more, suffering a critical illness, or death occurring at some point between now and when you plan to retire.
What type of insurance do you need?
Depending on your personal situation, the type of life insurance product you need will vary so getting the right advice is essential.
There are two basic types of life insurance, ‘term life’ and ‘whole-of-life’, but within those categories there are different variations.
The cheapest, simplest form of life insurance is term life insurance. It is straightforward protection, there is no investment element and it pays out a lump sum if you die within a specified period. There are several types of term insurance.
The other type of protection available is a whole-of-life insurance policy designed to provide you with cover throughout your entire lifetime. The policy only pays out once the policyholder dies, providing the policyholder’s dependants with a lump sum, usually tax-free. Depending on the individual policy, policyholders may have to continue contributing right up until they die, or they may be able to stop paying in once they reach a stated age, even though the cover continues until they die.
But don’t worry your adviser will establish what you need.
How does it work?
Life insurance usually pays out a lump sum if you pass away and some pay out if you are diagnosed with a terminal illness where you’re not expected to live more than 12 months. You decide how much the policy will pay out depending on factors such as your outstanding debts and continued living expenses for your partner and children.
How much does it cost?
This depends on your personal situation and includes:
- Information about your health
- Information about your lifestyle
- Your age
- Your occupation
- Your partners details (if joint cover)
Is Life Insurance for you?
Our independent financial advisers will take you through a step by step process to understand what type and amount of cover you will need for your circumstances. Our independence allows us to research and source the right product for your needs from the whole marketplace and our advisers will manage your application from beginning to end.
Insights from the experts
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