FAQ – Life Insurance

1. What is life insurance?

Life insurance is a financial contract where policyholders make regular premium payments to an insurance company in exchange for a fixed benefit upon death.

2. What is critical illness insurance?

Critical illness insurance is a form of insurance that pays out a lump sum of money if you are diagnosed with specific illnesses listed in your policy. Illnesses that are covered are usually long-term and very serious conditions such as:

  • Cancer
  • HIV
  • Cardiovascular conditions such as heart attack
  • Organ failure
  • Neurological conditions such as stroke
  • Disability such as loss of limbs.

3. What is Term Life with Critical Illness Insurance?

Term Life with Critical Illness Insurance provides a lump sum payment in the event of your passing or being diagnosed with specific illnesses listed in your policy.

  • Benefit payments are tax free and can be used for any purpose.
  • Term Life with Critical Illness has been designed to provide financial protection to:
    • Ensure a standard of living for your dependants such as continued living costs, school, and university fees.
    • Pay off outstanding mortgages or loans.
    • Cover funeral expenses.
    • Medical treatment costs
    • Cost of Living / Household Expenses
    • Loss of income

4. How much is life with critical illness insurance?

To calculate how much life insurance is, there are several factors that must be considered, namely your:

  • Age
  • Sex
  • Health
  • Lifestyle
  • Type of life insurance policy (i.e., single or joint and the policy length)
  • Amount of cover required
  • Length of policy term

The best way to calculate how much life insurance cover you may need is to gain a quick quote from Annabel.

5. How does life insurance work?

Life insurance is a contract between you and an insurance company. In exchange for regular life insurance premium payments, an insurance company will pay a cash lump sum (known as a death benefit) to your loved ones, otherwise known as your beneficiaries, named on your policy after your death.

6. Do I need life with critical illness insurance?

If you have people that depend on you financially, such as a partner, children, or relatives, you may wish to consider buying a life insurance policy. The life insurance policy will support you and your loved ones financially should the worst happen.

7. How much life insurance do I need?

How much life insurance you need and type of cover required is dependent on your personal circumstances and budget available.

  • Our Robo Advisor Annabel can guide you to see your cover options here.
  • You can access the Cover Calculator here to help you decide what you want covered.

8. What does life with critical illness insurance cover?

Life with critical illness insurance covers things like funeral costs, mortgage payments, other loan payments, debt payments, childcare costs, household bills, income replacement, medical treatment costs and family expenses.

9. Can you have more than one life with critical illness insurance policy?

Yes, you can have more than one life with critical illness insurance policy, but having one policy that meets all your needs tends to be simpler to manage.

10. Does life insurance pay for suicidal death?

Yes, most life insurance policies pay for suicidal death after an initial qualifying period. By implementing the qualifying period, life insurance companies can reduce the financial incentive for someone to commit suicide and trigger a life insurance pay-out.

11. What is placing a life insurance policy into trust and what are the advantages of this?

Placing a life insurance policy into trust means that you will give up ownership of your policy to a group of people known as trustees.

The main reasons why people choose to place a life insurance policy into Trust are:

  • They can make it easier for your loved ones to avoid probate and therefore access your life insurance benefit payment.
  • Any payout may not be subject to inheritance tax.
  • Any payout will be protected and not automatically be used to pay off debts.

You are able place a policy in trust. Trust forms can be found here or by contacting us on 03300100210.

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