We work with a panel of market leading insurers
What information do i need to get a quote?
Your health
Your occupation
Your age
Your lifestyle
Term Insurance
Term insurance is a policy that will cover you for a specified period of time (the “term” of the policy). There are two types of term insurance – level and decreasing.
Level term
Level term insurance is straight forward – when you make your application, you decide how much you want to pay each month or how much you want the policy to pay out (known as the “sum assured”) and how long you want the policy to last. You loved ones will receive the payout if you pass away during the term of the policy.
The sum assured – the amount that your loved ones will receive – stays the same throughout the policy.
The term of the policy is entirely up to you, but when deciding on how many years of cover you need, you should consider things such as:
- The ages of any dependent children, and how long it will be until they are able to support themselves financially.
- If there are any other family members who would struggle if you were no longer around to provide support (such as elderly parents or those needing care).
- If there are any significant debts that your family would have to pay off after you die.
Most level term insurance pays out a one-off cash lump sum. Your family won’t pay income tax or capital gains tax on a life insurance payout, but they might have to pay inheritance tax, depending on the size of your estate. It’s a good idea to write your life insurance policy into trust, which places it outside of your estate and means that the right people get the money when they need it most – it’s a simple process, and our advisers will guide you it.
Decreasing term
Decreasing term life insurance is a type of life insurance that reduces over time. This is usually set in-line with debts i.e. a mortgage, which will reduce over the period of time of the agreement. Decreasing terms are cheaper than the standard term, but you’ll receive less of a pay-out the longer the policy exists.
Family Income Benefit
Unlike a traditional life insurance policy, family income benefit insurance is a type of policy which pays your loved ones a monthly payment until the end of the agreement instead of a lump sum.
You should work out how much your dependents need per month and agree that figure with your insurer. This is considered a decreasing term policy, because the total payments decreases with time.
Whole of life
A whole of life insurance is a policy, which covers you for the remainder of your life. Generally, it’s slightly more expensive than a term assured policy as it never comes to an end until you pass away. You will pay a monthly fee and upon your passing your loved ones will receive the agreed payment.
Other types of protection
There are several types of protection to consider, which all have different benefits. Our qualified protection advisors will be able to tell you what's best for you.
Life Insurance FAQs
Life insurance is a type of insurance which provides your loved ones a financial lump sum should you pass away or be diagnosed with a terminal illness. This can help your family pay off any debts such as a mortgage, credit card or car finance, or simply just to leave a financial legacy to your family.
Whether you need life insurance and how much life insurance you do need depends on your situation. You may want to pay off your mortgage or cover the costs of any funeral arrangements. If you have children or other dependants, you may want to leave them a financial legacy. We recommend speaking to a financial advisor that specialises in life insurance to get appropriate advice.
The cost of life insurance will vary depending on the amount of cover. The more cover you have, the higher your monthly premium will be. Every life insurance quote will be personalised to you and your lifestyle. There are several things that considered in a life insurance quote.
This is down to personal circumstances and how much cover you need. There are different types of life insurance to cover all your needs, they are:
Each one has different benefits and will come at different costs for the agreed term.
That will depend on your personal choice and also your personal circumstances, family situation and your overall aims. Some people just want insurance to pay off the mortgage, others want to cover funeral costs, or to leave an inheritance for their children, and some want a combination of the above. It’s best to talk to one of our advisers as they can discuss your situation and make sure you have the right cover to look after your loved ones.
During the application, there will be questions about:
- Your health
- Your age
- Your lifestyle
- Your occupation
- How much cover you want and for how long
The cost of your life insurance will vary, depending on these factors, and the insurers need to know this information so they can make a personalised quote and offer you the right product.
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deb@aldridgemortgages.co.uk
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