Insurance FAQ'S

Q	Why do I need life cover?
A	If you have a partner or family who depend on your regular income, you need to be sure they would cope financially if anything happened to you. They would still have to find money to pay the mortgage, buy food, cover the bills and even keep the family car running. Term life insurance would help to replace your income and maintain your family's standard of living. Alternatively, mortgage decreasing life insurance would just pay off your outstanding mortgage and protect the family home.
Q	I already have life cover. Why do I need more?
A	You need to review your life cover regularly to make sure it's still appropriate for your circumstances. You may need to top up your life cover if you've recently had children, moved home or changed your job. Also, inflation may have reduced the value of any life cover you have taken out in the past, so its worth checking whether it would still meet your family's needs.
Q	What is life insurance and how does it work?
A	Level term life insurance will pay out a cash lump sum if you die during the policy term. This sum is guaranteed from the start of your policy as long as you keep paying your premiums. Your family can use the money however they choose. Mortgage life insurance is also known as decreasing term insurance. It is designed to pay off the outstanding balance on a standard repayment mortgage if you were to die during the policy term. The value of your cover decreases in line with the amount of money you still owe on your mortgage. Your policy can cover you and your partner if you wish, and it will pay out on the first death. After that the policy will end. Neither policy has any cash-in value at any time.
Q	How much life cover do I need?
A	You can choose how much cover you need and how long you want it to last. When you apply, you will be able to choose different options. Mortgage life protection is designed to cover the outstanding balance on a repayment mortgage, so you need to take this in to account when applying.
Q	Will I need a medical?
A	You may need a medical if you have suffered a medical condition, either now or in the past. You must give accurate information to ensure payout in the event of a claim, so it is important to disclose all the information required.
Q	When is it best to take out life cover?
A	As soon as you have responsibility for a mortgage, partner or family, it makes sense to take out life cover. The cost of life cover gets more expensive the older you get so you may benefit by taking our life cover early.
Q	Who can take out life cover?
A	Life cover can be taken out by any UK resident aged 18 or over. You can take out cover as a single policy (for you) or a joint policy (you and your partner). If you take out joint cover for two people it will pay out once, when the first person dies, and then the policy will end. If you add critical illness option to your life cover policy, it will pay out when the first person dies, or is diagnosed with a critical illness covered by the policy during the period of cover.
Q	Why would I need joint life cover?
A	Many families depend on the income from both partners, so if either one dies it may leave the family struggling to cope financially. Even if one partner doesn’t work, they may take most of the responsibility of running the home and looking after the children. If they were to die, you might have to work fewer hours, or you may need to pay for home help or childcare.
Q	How do you calculate life insurance premiums?
A	Life insurance premiums are based on the following factors: Your age, whether you smoke, your medical history, the level of cover you need, the length of time you need cover for (the term) and the type of cover you choose.