Life Insurance Frequently Asked Questions

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.

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Waiver of PremiumIf you wish to add this option it will ensure your premiums are paid after 6 months if you are unable to work through illness.

Increasing OptionIf you wish to ensure the benefits of the life insurance policy are not eroded by inflation you can choose the increasing option. Both the premiums and the benefits will increase throughout the term of the policy.

You can get as many quotes as you like, they are free and instantly available on line.

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.

Term Assurance

Pays out a lump sum within a set ‘term’.

For example a £100,000 Term Assurance policy over 20 years. In this instance the policy would pay out £100,000 if the life assured died within the 20 year term. This is the cheapest form of life insurance as there is ‘investment’ element, i.e. once the policy term ends there is no value to the plan. It can be viewed as a ‘pay as you go’ scheme with no maturity value at the end of the 20 years.

Family Income Benefit

Instead of paying out a lump sum on death a Family Income Benefit plan will pay out an income for a set term.

For example a £15,000 plan for 20 years. If the life assured died after 2 years, the plan would pay out an income of £15,000 each year for the remaining 18 years. If the life assured died after 18 years, the plan would pay £15,000 each year for 2 years. The term of the plan may be calculated until your children would be financially independent.

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.