Personal Life Insurance cover Pays out a pre-agreed cash lump sum, which is paid to your chosen family member(s) or someone else who you nominate, if you were to die.

The amount is decided by your needs and should cover your family’s needs if you died, you may want the mortgage paid off, clearing all debts and even leaving your family a lump sum so they wouldn’t suffer financially from your death.

It is available, depending on the insurer, to anyone age 17 and over to 75 usually, as the final entry age, although you can now take out insurance for the whole of your life, which never ends or the maximum term plan is to your 90th year, which is cheaper than whole of life.

Level Term Insurance

Level Term insurance – provides life insurance coverage for a specified term. The policy does not accumulate cash value. Term insurance is significantly less expensive than whole of life and the prices can be fixed for the whole term or index linked to raise with, depending on the insurer, RPI, inflation or a set percentage.

Mortgage Decreasing Life Insurance

Mortgage decreasing life insurance – If you have taken out a repayment mortgage or Joint mortgage with your partner, it is advised you have life insurance in place to pay the mortgage off if one of you died. The amount typically decreases, like a repayment mortgage, so is cheaper than the level term above, as if you died in 15 years time you would, hopefully, have paid off a large chunk of the mortgage, therefore the insurers would pay out less.

There is also an advance payment if you are diagnosed with a terminal illness, free of charge, where if you are told you have a year or less to live this pays out. (Some insurers won’t pay this in the final year of a term policy.)

Critical Illness

Critical illness insurance pays out a lump sum if you contract a specified illness. Depending on the insurer, you are covered for at least 40 different illnesses, including some cancers, strokes and heart attacks, and if you had one of these to a pre-determined specified seriousness, it pays out, so you don’t need to rush back to work and can concentrate on your full recovery.

Please get in touch if you would like to discuss Personal Life Insurance.

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