Life Cover
Life Cover
Safeguarding Your Family's Future
Safeguarding Your Family's Future
Having life cover in place is invaluable for protecting loved ones if the worst happens:
Having life cover in place can be invaluable to protecting those you love if the worst happens:
For more information, advice or a quote fill in the form with your details and we will contact you.
How life cover works - courtesy Legal & General
Benefits of a Life Cover Policy
It can cover your outstanding debts, such as a mortgage, personal loans, or credit card bills, relieving your family of this burden.
Knowing your loved ones will be financially secure in your absence can offer considerable peace of mind.
Family Income Benefit (FIB) life insurance is a type of life insurance policy that provides a regular income to your beneficiaries if you pass away during the term of the policy. Instead of a lump sum payment, FIB policies offer a predetermined monthly or annual income to your family or dependents.
If you're a business owner, a life cover can provide for business continuation or cover any liabilities upon your death. This can be arranged via an introduction to a third party on a referral basis.
How much Life Cover should I get?
Determining the right amount of life cover is crucial. Here are some factors to consider:
Current Income and Lifestyle: Your life cover should be sufficient to replace your income and maintain the lifestyle of your dependents.
Outstanding Debts: Consider all your current debts. This includes your mortgage, car loans, personal loans, credit card debts, and any other liabilities. These should be fully covered by your life insurance policy.
Future Expenses: Think about future financial obligations, like your children's education costs, your spouse's retirement, or any other major upcoming expenses.
Budget: Consider how much you can afford to pay in premiums. Life insurance should be a part of a balanced financial plan and not cause financial strain.
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How much does life cover cost?
The premium for a life cover policy can be influenced by several factors, including:
AGE
Age is a significant factor in determining life insurance premiums. Generally, younger individuals are considered to be at lower risk of mortality, so they may receive lower premiums compared to older individuals.
HEALTH & MEDICAL HISTORY
The state of your health and medical history can impact the premium. Insurance companies may consider factors such as pre-existing medical conditions, chronic illnesses, smoking habits, and body mass index (BMI). Generally,
LIFESTYLE CHOICES
Certain lifestyle choices can affect life insurance premiums. For example, if you engage in hazardous activities such as extreme sports or have high-risk hobbies, the insurance company may consider you to be at a higher risk, resulting in higher premiums. Similarly, smoking and excessive alcohol consumption can also impact premiums.
AMOUNT OF COVER
The amount of coverage you choose, known as the sum assured or death benefit, can affect the premium. Higher coverage amounts will generally lead to higher premiums.
POLICY TYPE & DURATION
Different types of life insurance policies, such as term life or whole life insurance, have varying premium structures. Additionally, the duration of the policy can also influence the premium. Longer-term policies often have higher premiums compared to shorter-term policies.
FAMILY HISTORY
Insurance companies may inquire about your family medical history. If you have a family history of certain hereditary diseases or conditions, it could impact your premium.
what is
Family Income Benefit?
Family Income Benefit (FIB) life insurance is a type of life insurance policy that provides a regular income to your beneficiaries if you pass away during the term of the policy. Instead of a lump sum payment, FIB policies offer a predetermined monthly or annual income to your family or dependents.
Regular Income: Upon your death, the policy pays out a regular income to your beneficiaries for the remaining term of the policy. The income is tax-free and can help cover ongoing expenses, such as mortgage payments, household bills, education costs, and daily living expenses.
Policy Term: FIB policies are typically set for a specific term, such as 10, 15, 20, or 25 years. The income payments cease at the end of the policy term.
Lower Premiums: Family Income Benefit policies often have lower premiums compared to other types of life insurance, such as whole life or term life policies with a lump sum
Inflation Protection: Some FIB policies offer the option to add inflation protection, which means the income payments increase each year to keep pace with inflation. This helps ensure that the income retains its purchasing power over time.
Life insurance is a contract between an individual and an insurance company. In exchange for regular premium payments, the insurance company provides a lump sum payment, known as the death benefit, to the beneficiaries upon the insured person's death.
Life insurance provides financial protection for your loved ones in the event of your death. It can help cover funeral expenses, replace lost income, pay off debts, and ensure your family's financial security.
The amount of coverage you need depends on various factors, such as your income, debts, financial goals, and the needs of your dependents. It's advisable to evaluate your specific circumstances and consult with a financial advisor to determine the appropriate coverage amount.
There are several types of life insurance policies, including level term life insurance, decreasing term and whole of life insurance, universal life insurance, and variable life insurance. Each type has its own features and benefits, so it's important to understand the differences and choose one that aligns with your needs.
Term life insurance provides coverage for a specific period, typically 10, 20, or 30 years. If the insured person dies during the policy term, the beneficiaries receive the death benefit. Term life insurance is generally more affordable compared to other types of life insurance.
Whole life insurance provides coverage for the entire lifetime of the insured person. It combines a death benefit with a cash value component that grows over time. Whole life insurance is generally more expensive but offers lifelong coverage and potential cash value growth.
Do you have more questions?
To find out more about life cover policies including:
To find out more about equity release mortgages including:
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As with all insurance policies, conditions and exclusions will apply.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. You may have to pay an early repayment charge to your existing lender if you remortgage.
A typical fee for arranging a mortgage is £299. However, the actual fee will depend on your circumstances but will not exceed £999.
DS Financial is a trading style of Darren Shepherd, who is an Appointed Representative of Stonebridge Mortgage Solutions Ltd which is authorised and regulated by the Financial Conduct Authority.
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