Life insurance for family
When it comes to insurance, people are very quick to protect physical assets such as their vehicle, home, and contents, yet there's a worrying lack of urgency when it comes to protecting the most important thing of all – your family.
Life insurance can help you to bridge the financial shortfall of losing a loved one. Whether you're the main breadwinner, a mortgage holder, or simply want to leave a bit of extra cash to help your family get by, there are plenty of cost-effective life insurance policies available.
How does family protection life insurance work?
Life insurance is a very simple type of protection policy which agrees to pay out a lump sum should you or another person named on the policy pass away whilst it's in force.
Simply choose how much you'd like to leave behind and the number of years you'd like to be covered for. Once you've found an insurer and a premium you're happy with, it's just a case of choosing a start date, setting up a direct debit and you're protected.
You'll also have the added benefit of terminal illness insurance included, completely free of charge, which actually pays out whilst you're still alive should you be given less than a year to live during the policy term. Whilst it's not a particularly pleasant scenario to think about, the cash can provide a massive boost if you have medical needs or simply wish to spend quality time with your loved ones.
How much should I insure myself for?
This type of family protection life insurance is also known as level term life insurance. That's to say that the amount you're insured for won't change over time so you'll always know exactly how much your family will receive should a claim be made.
Within reason, it's completely up to you how much you'd like to be insured for. Cover can start from a few thousand pounds to cover a funeral through to millions or tens of millions for Inheritance Tax planning.
It's worth keeping in mind that the amount of cover (sum assured) can have a big impact on your overall monthly premium, so take a look at a few different options until you find an amount that meets your budget.
What isn't covered by family protection life insurance?
With family protection life insurance, any type of death is covered from day one as long as it hasn't been excluded due to some declared medical conditions.
Although the vast majority of life insurance applicants are accepted on 'standard terms' (that is, without any exclusions or risk ratings) there is a small percentage of policyholders who may have acute illnesses temporarily or permanently excluded.
It goes without saying that any exclusions will be fully and transparently detailed on your personal illustration prior to the policy starting.
For more information on life insurance for contractors or to set up a family protection policy, Call us or contact us via our contact page and one of our specialists will be happy to help.