Address
119 Commercial RoadPoole
Dorset
BH14 0JD
Telephone Number
01202 716777Fax Number
01202 716788Email Address
info@bluepebblemoney.co.uk
Life Insurance
Life Insurance Quotes
 |
 |
| Decreasing Term Assurance | Level Term Assurance |
|
|
Term Assurance Cover does not have a cash-in value at any time.
Life Insurance provides protection for your family against financial difficulties, by paying out a lump sum following your untimely death. The amount payable is determined at the outset of the policy and is usually designed to cover the outstanding balance of your mortgage, loans or credit and sometimes additional costs.
Life Insurance Explained
1. Level Term
Level Term policies are usually taken out over a pre-determined term and pay a lump sum if death occurs within this time. The lump sum payable stays the same throughout the policy term.
Critical Illness cover can be added to the policy for an additional premium and pays out a pre-determined lump sum on the diagnosis of one of a range of medical conditions.
This type of policy does not usually acquire a maturity value or a surrender value. At the end of the policy term, or if premiums cease before that date, the policy will simply expire.
2. Decreasing Term
Decreasing Term policies differ from Level Term policies in that the lump sum payable upon death of the insured person/s decreases over the life of the plan, eventually reducing to nil at the end if the term of the policy.
This type of policy is frequently taken out by home-owners to provide adequate cover for their mortgage.
Critical Illness cover can be added to the policy for an additional premium.
This type of policy does not usually acquire a maturity value or a surrender value. At the end of the policy term, or if premiums cease before that date, the policy will simply expire.
3. Income Protection
Also known as Permanent Health Insurance (PHI), Income Protection provides a salary in the event that you are unable to work due to illness. The income payable is tax free and may continue until you reach your selected retirement age, or the end of the policy term (dependant on the policy terms and conditions). There is usually a deferment period, during which time you will not receive any benefits from the policy. The shorter the deferment period selected, the higher the premiums. This type of policy is typically chosen by the self-employed, who do not receive sick pay, or those people who are the sole-earner in their family.
4. Family Income Benefit (FIB)
FIB policies offer a practical solution for families who need to replace lost income in the event of untimely death of a partner/parent. FIB policies make regular payments to the beneficiary/ies of the policy, rather than a lump sum and because FIB policies are a type of Life Insurance policy, the income received is not subject to tax. Payments will continue until the end of the term, at which point the policy will cease.
5. Life Insurance FAQs
Q. Why do I need Life Insurance?
A. If you have dependents, or a mortgage, Life Insurance is an important consideration. Life Insurance provides financial support in the event of your death. If you do not have adequate Life Insurance in place, your family may struggle to pay household bills or meet monthly mortgage payments, without your wage coming in. Some mortgage lenders will insist that you take out a Life Insurance policy even if you do not have any dependents.
Q. How much does Life Insurance cost?
A. cover is available from as little as £10 per month. The premiums payable are entirely dependant on the sum assured, in other words, the amount of lump sum payment you require, your age, gender, health, occupation etc. Contact us now for a quote.
Q. How long will the cover last?
A. Cover will continue until a date you choose, provided that you continue to pay your premiums. Your chosen term will often link in with the remaining term of your mortgage, or your expected retirement age.
Q. Will I receive a lump sum payment if I survive the term of the policy?
A. Life Insurance policies typically do not acquire a maturity value or a surrender value. At the end of the policy term, or if premiums cease before that date, the policy will simply expire.
Q. Will tax be payable on the lump sum paid on death?
A. The benefits payable from Life Insurance policies are not subject to tax on payment.
If the policy is not ‘written under trust’ the lump sum could become liable for Inheritance Tax. If the policy is written under trust, the payment will be made directly to your chosen beneficiary/ies and not via your estate, and will not become liable for Inheritance Tax.
Q. Will my partner be covered too?
A. Yes. You can have cover which pays out once, if one or both of you die during the term.
Or, you can each set up your own policies.
Q. What is the difference between joint life and single life policies?
A. Single Life policies will pay out only in the event of death of the person named on the policy, in other words, the life assured.
Joint Life policies will pay out on death of either of the named persons (lives assured).
Joint Life, first death policies will pay out on the death of first policy holder and will then cease.
Joint Life, last survivor policies will pay out on the death of the second policy holder.
Q. Will the lenders contact my GP?
A. Depending on your health and medical history, the insurer may want to contact your GP for further details on any conditions declared. You must provide your consent before the insurer to contact your GP and you are entitled to a copy of the information provided by your GP.
Q. What happens if I develop a Terminal illness?
A. A 'Terminal Illness' is an illness from which you are not expected to survive more than 12 months. Many policies include Terminal Illness Cover. This usually means a lump sum payment on diagnosis.