Buying Life Insurance - Typical Key Features - FAQ
Buying Life Insurance ~ Protection Priority Example Tables
Many people searching the internet often look to buy life insurance that is just cheap & maybe rather than getting advice from a broker - who may have years experience in this specialist market place; Please see the above example Priority Protection tables to understand some typical priorities one should consider if you want to buy life insurance or other protection issues.
What to look for ~ if you want to Buy Life Insurance
Note: if you don't have a partner, spouse or children, dependants or indeed any committments then your needs maybe totally different & you may not need to buy life insurance at all.
Term & Whole Life Life Insurance
Term assurance pays out only if you die within a certain term. Whole of life assurance pays out whenever you die and some plans may also contain an investment element to them. [ We do not give advice on for example whole life insurance with an investment element but can refer you to an authorised adviser ]
Buying Life Insurance - Lump Sum
This is the simplest and cheapest type of life assurance, and is known as term assurance because you choose how what term ie; how long you're covered for, say, 10, 15, or 20 years (the term).
Term life assurance only pays out if the life assured dies within the term you've agreed. If you live longer than the term, you get nothing. As a couple, you can also buy joint life insurance, with the policy usually paying out on the 1'st claim during the term.
Also consider how large the life cover you need if this is not covering say just a debt like a mortgage or loan. Common practise was 10 x salary but if interest rates are low this may not be enough nowadays.
Buying Life Insurance - Family Income Benefit
This policy pays out income rather than a lump sum & maybe suitable for those who require income on death ( as they are unsure how best to invest a lump sum for income ). Family Income Benefit plan may be increasing to help offset inflation.
Buying Life Insurance Online - Check the Small Print
Always answer questions as best you can and disclose any existing medical conditions when asked. If you don't give the full facts, you could invalidate your policy & the insurance company won't pay out.
When buying Life Insurance, check for any exclusions - in other words, when the policy won't pay out. For example, many plans do not cover death due to alcoholism or drug abuse. You might not be covered while taking part in risky sports. If your health is poor when the policy starts, some causes of death might be excluded or you might be refused cover altogether.
By paying extra, you can usually include a waiver of premium. It pays the premiums if you can't work because of a long-term illness so that your cover is not interrupted.
How much does it cost to buy a Life Insurance Policy ?
This depends on several factors, such as the amount of cover you want and the length of the term. Naturally, it's also based on the likelihood of your insurer having to pay out: if you're a smoker and do a dangerous job, you'll pay more than a non-smoking office worker.
Keep your Life Insurance Plan - Legal Documents safe !
Naturally when you buy life insurance - the end result maybe that the life cover plan you take out does payout - but maybe sooner than intended ! As such, do not forget this is a legal document & needs to be kept safe. Documents can be stored at home in a safe file or say at a bank in their safe custody.
Documents needed for a Life Insurance Claim
If the life assurance policy holder dies becomes critically ill or is off long term sick etc; during the term of the life insurance policy - the life assured or beneficiaries or power of attorney will need to contact the life insurance company for a claim form. If the person died, the claim form will need to be signed by the life insurance beneficiary or the policy holder's representative and also be accompanied with an official copy of the death certificate. They may also require the original plan documents, trust forms etc;
The death certificate will state the date, location and the cause of the death and has to be signed by a doctor. It usually will also have with it a certificate from the coroner confirming the findings. Life insurance policies may have clauses that were agreed to at the time of taking out the policy that will stipulate any types of death that are not covered eg; suicide, aids or natural causes not just accidental death.
What happens if you cannot find the original life insurance policy document ? Well the person will usually have paid for their lifecover from their bank account on a monthly or annual basis, so check this up. Some accidental death plans form part of a bank or credit card contracts. If not, then if this person then dies without a will or has not kept clear records, finding out whether they held life assurance can be difficult. Some of those people who move home also forget to inform their life insurer of their new address.
Often, these lost life insurance policies were taken out pre-2000, and as the Uk Insurance marketplace has changed - there is always a possibility that the firm used has been bought out and merged into a larger insurer. See our guide list to uk insurers or try the Unclaimed Assets Register www.uar.co.uk* which could be helpful. ( * Note: You are now leaving the regulated site of Uk Life Insurance Quotes. Neither ourselves, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.)
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