Is Life Insurance Right For Me?
If you are worried about how your family or loved ones would cope financially in the event of your death you should consider life insurance. It is important to make sure your loved ones are not left vulnerable financially, and a life insurance premium can make sure they are safe and catered for should something happen to you. It is also important to have some form of life insurance if you have a mortgage or have borrowed on credit because without it your partner or family may inherit your debt. If you don’t have any dependants or a mortgage it may be worth considering critical illness or income protection instead of life insurance. Although life insurance premiums are cheaper the younger you start the policy.
What does Life Insurance Provide?
The majority of life insurance policies pay out a lump sum to your family or loved ones on your death. This sum can be used to pay off a mortgage or meet financial obligations, pay for childcare, education or just supplement a smaller incoming salary. You can choose to have a policy which provides a monthly income instead of a lump sum. These policies are known as Family Income Benefit are often cheaper and can be varied depending on the length of the cover and the annual payment total. These types of policies are term assurances as the cover has a set period of time.
Mortgage Protection Insurance
Mortgage protection insurance is normally insisted upon by your mortgage provider as it guarantees them a return on the money you've borrowed. One of the best ways to insure your mortgage is through a 'decreasing term' life insurance policy. A decreasing term policy is a life insurance policy where the payout decreases every year through out the length of the cover. This is the perfect way to cover a mortgage as it tends to be the most cost effective insurance policy, while still guaranteeing that your loved ones won't be left with debt.
Family Income Benefit
Family income benefit is a form of life insurance, but instead of paying out a lump sum it pays out a monthly tax free income for your dependants. It is a much more affordable option and is perfect for families with young children or those who need more cover than they can afford. If you have a young child, family income benefit is a good form of life insurance as it will protect you child financially while they are at their most vulnerable. Find quotes today by speaking to one of our advisers, they can guide you through the amount of cover you will need and suggest a time period to keep the cover for, helping to give you the most affordable option.
Critical Illness Cover is a popular add on because it pays out a lump sum to the policy holder should they be diagnosed with a critical illness. There is also serious illness cover which offers the same thing, however it offers cover for a wider variety of illnesses but at a slightly higher cost. Critical illness tends to be cheaper to add to a policy than it is to take it out on its own. Speak to an adviser today to find a policy with the right cover for you.
Easier and Faster Access
Putting your life insurance policy into trust has major benefits and is a fairly simple process. Writing the life insurance policy into trust will allow your loved ones easier and faster access to the money. Having a trust means that the insurance money doesn’t go through probate, a legal process, in which a nominated loved one needs to be granted access. Instead the insurance company process the payment and the money goes directly to the loved ones. Having fast and simple access can eliminate some of the trauma your loved ones will have to go through.
Lifestyle Care Cover
Vitality is also offering Lifestyle Care Cover to their Whole of Life Cover policy. This special cover will pay out when you pass away or when you need help looking after yourself. Nearly 60% of over 65s will need some type of care and support during their retirement and the latest statistics show that 37% of people have said that one of their main worries for the future is becoming dependent on their friends and family. Therefore, this Lifestyle Care Cover will help to ease the stress and take off the pressure from your loved ones when you are in need of any help.
Pay Less Inheritance Tax
Trusts have the ability to sidestep inheritance tax. Instead of the lump sum from your life insurance becoming part of your legal estate it goes directly to your beneficiaries. If your estate then doesn’t reach a specific amount, your family won’t have to pay inheritance tax. Putting a policy into trust is a simple process and our advisers can help guide you through this.
Writing your policy into trust also means that if you owe money to any creditors, the money won’t go to them it will instead go to your loved ones. You specify who your beneficiaries are and the money will go directly to them. You are also able to change these at any point completely free of charge and without having to have another GP report. If you’re interested in taking out a policy in trust simply fill out the online form today.
What To Look For When Comparing Insurance
Comparing insurance providers is the best way to make sure you are getting the best deal, although that doesn't always come down to price. With all products when it comes to cost you get what you pay for. The polices we quote for are all comprehensive policies with guaranteed premiums. This means that in five years your insurance won't suddenly jump in price. If you do need any help and advice make sure you speak to an adviser. The advisers at QuoteSupermarket are dedicated to helping you find the best insurance policy for the best price, so if you do need any help comparing policies – just ask.