Personal Finance

Life Insurance

In just a few short minutes you could be enjoying peace of mind that lasts a lifetime.

Arranging life assurance cover is the best way to ensure your family is taken care of in the event of your death, giving both you and them peace of mind. Life assurance, put simply, is a policy provided by an insurance company that pays your family either a lump sum or a series of smaller sums in the event of your death.

There are many factors to consider when choosing a life assurance policy. Please see our Frequently Asked Questions below.



What are guaranteed and Reviewable premiums?

Guaranteed premiums will remain the same throughout the term of the policy.

Reviewable premiums may change during the term. The Life Insurance provider will review all their policies at varying times and decide if the premiums need to increase.


How much Life Insurance do I need?

You may have an idea of how much protection your family would need to repay outstanding debts or what would be needed to provide adequate income.

If you are unsure please contact one of our advisors.


What are the different types of Life Insurance?

Term Assurance
Pays out a tax-free lump sum on the death of the life assured during a specific ‘term’. The benefits of the policy may be used to repay any outstanding debts or it can be invested to provide an income for your dependants indefinitely.

If you die tomorrow, what income would your family need to maintain their standard of living? The mortgage may be repaid, but what income would they have? If you survive the term the policy ends with no cash value. A very simple, easy way to protect your dependants or ensure debts can be repaid on death.

Various elements can be included in the policy, e.g. indexation. This will increase the amount of cover you take out in order to keep track with inflation. If you need assistance with this or any other additional benefits, please contact one of our advisors.

Family Income Benefit
This will pay out a chosen amount of income not a lump sum. It is designed to replace any income lost through the life assured death. The amount paid will be tax free for the period of the policy.

If the policy was taken out for 20 years and the life insured died at the end of year 1, the amount of income specified would be paid for 19 years. If the life assured died after 18 years, the benefits would be paid for 2 years. After the term of the policy finishes all benefits cease.

Varying elements can be included in the policy, e.g. indexation. This will increase the amount of cover you take out in order to keep track with inflation. If you need assistance with this or any other additional benefits, please contact one of our advisors.

Whole life insurance
This type of policy remains valid for the life of the policyholder.

A whole-of-life policy is one form of investment-type policy, which provides cover for as long as you live and it builds up an investment value that you can cash in by surrendering the policy. It does, however, take many years for a surrender value to build up.

The payment on a whole life policy is inevitable. Although there are different types of whole life insurance, part of the premiums are paid into an investment fund to pay out the benefit on death.

Decreasing Term Insurance
Otherwise known as mortgage life assurance is a term assurance product where the amount of cover decreases over the period of the policy.

This is usually used along side a repayment or capital and interest mortgage to ensure that the amount of mortgage is repaid if the life assured dies during the term of the mortgage. As with Level Term Assurance, the level of cover can also include Critical Illness.


Why do I need Life Insurance?

To ensure that your family or anyone who depends on your income does not suffer financially on your death. Life Insurance is also used to repay any outstanding debts you may have on your death.

For example, a married man with 2 children who earns £20,000 per year, has a mortgage, a personal loan and credit card debts. If he dies with no life insurance in place, how would his wife manage to keep the house, pay the mortgage, personal loan and credit cards as well as look after the children?

If the correct amount of life insurance was in place, on his death, the mortgage, personal loan and credit cards would be paid off and an income paid to replace his lost earnings. This would ensure his wife could manage financially and look after the children.

Life Insurance is about having the peace of mind that your family would not suffer financially.


Should I put my Life Assurance policy in trust?

Many of our clients are unaware that life policies should be ‘written in trust’ for a beneficiary to receive the maximum benefit. If not the value of the policy will be put into probate and could be subject to inheritance tax.

Trusts can be an essential part of good financial planning and need to be considered carefully.

Obtain an Instant Life Insurance Quote on line or Contact one of our advisors for assistance.

The Financial Services Authority does not regulate trust advice


Over 50 Life Insurance

Provides your family with a tax-free lump-sum on your death, so that your loved ones experience less of a financial burden after you are gone. Anyone who is aged between 50 and 75 can take out a plan, and acceptance is guaranteed – to everyone.

You won’t have to answer any intrusive health questions when you apply, and you can start receiving cover from just £10 per month.

Over 50 Life Insurance at a glance:

Guaranteed acceptance with no medical
As long as you are aged between 50 and 75 you will get cover, regardless of your health

Premiums from just £10 per month
Choose a premium that suits you and we guarantee it will never rise

A fixed cash lump sum
You choose how much you want your family to receive, and we promise this will never be reduced

Quick and easy application process
Our online application process is easy to use and can be completed in minutes

Need more information or help?
Remember, if you have any questions about the plan, or applying for the plan, our customer services team will be happy to help by calling us on 0800 195 3757

Important things to consider

  • If you stop paying your premiums your life cover will end.
  • The plan has no cash in value
  • You have no life cover within the first 2 years unless your death is accidental.
  • The final amount payable is likely to reduce in value because of the effects of inflation.
  • Your estate may get back less than you have paid in.


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