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Life Cover

Life cover helps provide financial protection for your family or other named beneficiary in the event of your death. Read our comprehensive guide to learn more, and if you need any help making the right decisions, don't hesitate to contact us.

Life Cover Photo

Life cover is essential for providing financial security for you and your family. In addition, taking out life cover can mean that, in the event of your death, those close to you can continue their standard of living without fear of financial hardship.

It is easy to feel overwhelmed when considering a life-cover policy, but it doesn’t have to be that way. Our comprehensive guide is designed to give you all the information you need to make an informed decision about your life cover needs.

What is Life Cover?

Life cover is a type of insurance policy designed to financially protect your dependents/beneficiaries in the event of your death, providing them with financial stability and security. It can pay off debts or provide a lump sum to help with everyday expenses and future planning.

The death of a partner can cause significant financial, practical, and emotional strain; however, life cover can help protect you from this sudden tragedy. Even the most basic insurance policy to provide funds for your family in case one of you passes away eases some of that burden – giving peace of mind so that loved ones are not left without proper care.

We often believe that safety will come at an unwanted cost, but for a mere £10 per month, a non-smoking male aged 36 or younger can get life insurance of up to £150,000 with coverage lasting 25 years. It’s even more expensive to insure your boiler with British Gas! So this poses the question: which one matters most?

The rate you’re eligible for is based on your individual factors. Talk to us today, and we’ll provide a tailored illustration.

What Type of Cover Do I Need?

Mortgage protection

This solution pays out a single amount to address the outstanding balance on your mortgage. It would help if you also considered taking out cover for car loans and credit card payments. Review your plan regularly to ensure that it is still suitable for your necessities, especially when taking out new credit.

Family protection

Remember that your mortgage is only part of the picture regarding providing for you and your family. In a tragedy, other costs, such as food and other necessities, will still be covered.

Family protection plans can provide a regular income or lump sum payment so that all essential costs can continue to be met without worry or hesitation. So pay attention to your protection needs; plan today!

Anyone who has people who are dependent on their income and would be financially impacted if they were to pass away should consider purchasing life cover. This could include those with families, partners, children, or other dependents who rely on you financially. 

How Does Life Cover Work?

If the insured person passes away while their policy is active, the insurance provider will pay out a lump sum amount to their beneficiaries (or the policyholder’s estate). This sum is usually determined by the provider and can be adjusted to suit the policyholder’s individual needs.

What are the Benefits of Life Cover?

Life cover provides financial protection for your family if you pass away during the term of the policy. It aims to replace any income lost because of your death and helps cover outstanding debts and funeral costs or support dependents.

Life cover comes with several key benefits, including:
  • Lump sum payments in the event of death
  • Financial security and peace of mind
  • Customizable coverage and flexible policies
  • Tax breaks on premiums payments
  • Regular payments over time to beneficiaries
  • Covers financial contingencies like premature death or disability

What are the Different Types of Life Cover?

There are two main types of life insurance: Term Life Insurance and Whole-of-Life Cover.

Term life insurance:

Term Life Insurance provides cover for a limited period, usually up to thirty years, and is designed to provide financial protection over the chosen term and will pay out in the event of your death. It is the most popular form of life insurance as it is often more affordable than other options.

Whole of life cover:

Whole of Life Cover is more permanent and provides lifelong protection if premiums are paid until the age of specified maturity. However, this type of life insurance can cost more than term plans due to its longer-term policy.

It can provide better coverage options with features such as cash values or dividends that can increase over time. In addition, term and Whole Life Cover policies can usually be tailored to meet individual needs, such as additional cover for illnesses or disability.

 

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Mortgage Advice..

Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation. Click the “Contact Us” button.

What Does Life Insurance Cover?

Life insurance provides financial protection for your family if you pass away during the term of the policy. It aims to replace any income lost because of your death and helps cover outstanding debts and funeral costs or support dependents. It pays out a lump sum or regular payments determined when taking out the policy.

Generally, life insurance covers the following:
  • Debts such as mortgages, personal loans, or credit cards
  • Funeral costs
  • Inheritance tax bills
  • Estate planning purposes
  • Financial support for bereaved family members
  • Regular payments for dependent children
  • Charitable donations

 

What Does Life Insurance Not Cover?

Life insurance generally does not cover any pre-existing conditions, intentional acts, and certain types of death. Therefore, it is essential to be aware of such exclusions to choose an appropriate policy that meets your needs.

Life insurance typically does not cover:
  • Pre-existing conditions: any existing medical condition or illness which could cause death soon.
  • Intentional acts: suicide, self-harm or participating in dangerous activities.
  • Certain types of death: death due to alcohol or drug use, war, or civil unrest.
  • Costly treatments: the cost of medical treatments for a severe illness are generally not covered by life insurance.

How Much Life Insurance Cover Do I Need?

The amount of life insurance cover you need depends on your circumstances, such as age, lifestyle, and income.

It’s essential to ensure that the amount of cover you choose is enough to provide for your family in the event of your death.

It is recommended that you calculate how much cover you need by considering factors such as your current debts and liabilities, including mortgages, personal loans or credit cards, and your family’s financial needs in the event of your death.

Does Life Insurance Cover a Mortgage?

Life insurance can be used to cover a mortgage. It is designed to provide a lump sum payment in the event of death during the policy term to pay off any outstanding debts.

This type of life insurance is known as Mortgage Protection Insurance, and it pays out directly to your mortgage lender if you wish so that your family does not have to worry about repaying the loan.

It is important to note that you will need to set up a policy for the full amount of your mortgage and ensure that it is kept up to date with any changes in your financial circumstances.

It is also worth considering other forms of life insurance, such as Whole of Life Cover, which can provide a more significant benefit and be tailored to meet individual needs.

Over 50 Life Cover Explained

Over 50 life cover is a type of insurance specifically designed for people over 50. It protects individuals and their families against financial hardship due to unfortunate events such as illness or death.

Over-50s policies are usually life assurance plans, which means the policyholder will receive a lump sum if they pass away during the term of their contract.

This money can help pay for funeral and medical bills or compensate for lost income. Over 50 life cover typically offers lower premiums than other types of insurance. However, some providers may also provide additional benefits like cashback.

These whole-of-life policies don’t require you to have a medical or health check.

What Should I Consider when Choosing a Life Cover Policy?

When selecting a life cover policy, it’s essential to consider several key factors. Firstly, determining the amount of coverage you need should be enough to provide financial security for your loved ones in case of your death or disability.

It’s also important to consider the type of policy that best suits your needs: Term Life Insurance provides protection for a limited period and is usually more affordable. At the same time, Whole-of-Life Cover offers lifelong protection with potential cash values or dividends.

In addition, it’s essential to read through all policy exclusions and understand what’s covered and any age restrictions. Finally, it’s wise to compare different providers to get the best premiums and level of coverage that suit your individual needs.

Where Can I Find More Information About Life Cover?

Please get in touch with us directly if you have any questions or want more information on life cover.

We can provide advice and guidance to help you make the right decision for you and your family.

Final Thought:

Life cover is the basic insurance, especially if you are over 50. It can help protect you and your family financially against unforeseen events such as illness or death.

When choosing a policy, it’s essential to determine the level of coverage you need and compare providers to get the best premiums and coverage for your circumstances. In addition, taking out life cover can provide peace of mind and security for you and your loved ones in the years ahead.

FAQs: Life Cover

Most frequent questions and answers about life cover

Yes, life insurance can provide coverage for funeral expenses. In some cases, the death benefit will be paid out to the beneficiary named on the policy to cover funeral expenses. It’s essential to read your policy carefully and understand what is covered before deciding.

Having life cover is not a requirement for a mortgage, but it can help provide financial support in the event of your death or illness. In addition, the benefit from the life cover policy could be used to cover any outstanding payments on the mortgage, ensuring that your family are not left responsible for paying off the mortgage in the case of an unforeseen event. It is advisable to speak to an insurance provider about your options and determine if taking out a life cover policy is suitable.

No, life insurance policies are usually only applicable to the policyholder. The death benefit may be paid out in certain circumstances when the policyholder passes away. However, this varies depending on the type of life insurance policy and any applicable terms or conditions. It’s essential to read through your policy carefully before deciding.

The duration of a life insurance policy typically depends on the type of policy taken out and the level of cover. It can range from a specific period, such as 5 or 10 years, to an entire lifetime. Many life insurance providers offer policies with varying levels of coverage and length, so it is essential to research what would be best for your circumstances.

Depending on the life insurance policy, some may cover deaths overseas. However, it is essential to read through the policy details in detail as specific terms and conditions, such as exclusions or additional charges, may apply. Therefore, before taking out a policy, you should check with your provider to understand what it covers.

Yes, life insurance usually covers natural death. Policies may specify any special conditions or exclusions in the event of natural death, so it is important to read through the policy details thoroughly before signing up to make sure that it covers what you need it to.

What next?

We will come back to you quickly to let you know how we can help. If you would like to speak to us immediately, call us on 01708 676 111.

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Liz Syms

(CeMAP)

About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.

About the Author

Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.