Why do I need life cover?
Life Cover is crucial if you have dependents such as school children or a partner who relies on your income. Think... If you were no longer there to pay the mortgage and bills would your family be able to cope financially? Life Cover gives you peace of mind, it will provide for your family if you die.
What is life cover?
Life insurance, also known as life cover or life assurance is a way to help protect your loved ones financially if you were to die. You choose the amount of cover you need and how long you need it for and you can pay your premiums monthly or annually. In return, your family has the reassurance of knowing that if you died while covered by the policy they could receive a cash sum pay out.
What is critical illness cover and why would I need it?
Critical illness insurance will pay out if you get one of the specific medical conditions or injuries listed in the policy. Think...If you are out of work for a short period of time or on a permanent basis, would you be able to afford the bills?
Examples of critical illnesses that might be covered include:
- • Heart attack
- • Stroke
- • Certain types and stages of cancer
- • Conditions such as multiple sclerosis
Most policies will also consider permanent disabilities as a result of injury or illness. It only pays out once and then the policy ends. Some policies will make a smaller payment for less severe conditions, or if one of your children has one of the specified conditions.
You should consider that state benefits might not be enough to replace your income if something goes wrong. If you’re eligible, welfare benefits range from around £70 a week to just over £100 a week, depending on your circumstances (i.e. whether or not you have children, a certain level of savings, or if your partner works).
Critical illness cover should be considered if:
- • You don’t have savings to tide you over if become seriously ill or disabled
- • You don’t have an employee benefits package to cover a longer time off work due to sickness
1 in 2 people born after 1960 will be diagnosed with some form of cancer during their lifetime. (Cancer research UK)
Every year 1m workers in the UK unexpectedly find themselves unable to work because of injury or illness, according to the ABI.
Why use a broker to set up your life insurance?
We aim to do the best for our clients and know their needs and requirements, price comparison sites, offers and going direct can all be tempting when looking for a cheap deal however using a broker service and the knowledge our advisors hold can make sure you have the best cover for you not to mention the time you will save. We also do not charge any fees for setting up life cover.