What is life assurance?
Life assurance provides a lump sum payment ( sum assured ) upon death of a life during the course of the term of the policy and is a means to protect your family from financial hardship as a result of your death.
Life Assurance cover can also be used as a means to plan for Inheritance Tax.
How much cover do i need?
Everybody’s circumstances are different and change as we progress in life. To determine the level of cover which is required a number of factors should be taken in to account
• Age
• Family status
• Day to Day Bills
• loans
• Current Incomes
An important point to note when deciding on the level of cover is, ‘if i were to die in the morning what lump sum would my family need as a replacement income to run the household on a day to day basis and clear any outstanding loans?’.
Safeguard Insurance look to review this level cover with their clients on an annual basis as all of the above is subject to change.
What is serious illness cover?
Serious illness insurance is a benefit which can be added to your Life Assurance Policy or Mortgage Protection Policy. It pays out a tax free lump sum if you are diagnosed with one of the specific illnesses or disabilities that your policy covers. Most policy’s have a core list of illnesses or disabilities which are covered.
Serious illness cover is also sometimes called ‘critical illness cover’.
What determines the cost of these covers
A number of factors are taken in to account when calculating the cost of Life cover and indeed serious illness cover as per the following
• Age Profile
• Smoking Status
• Medical History
• Level of cover
• Term of the policy
It is important to point out that all quotations are subject to medical underwriting and are subject to review following this underwriting, a medical may also be requested.
What is the Difference between dual life and joint life?
Dual Life Cover
Provides cover for both lives independently, with separate payouts possible on the
death of both lives assured. Hence in the event of death of the first life, cover will continue on the second life insured.
Joint Life Cover
Provides cover for both lives but will only payout on the first death at which time cover on the second life will then cease.
Life & Accelerated Serious Illness Cover
Means that serious illness cover is added to your life policy and that your benefit could be paid out either if you are diagnosed with a serious illness or if you die; which ever happens first.
Level – term assurance
Guarantees a lump sum payout upon death within a fixed time period. The sum assured does not vary during the term of the policy and once it has expired, the policy has no value. This is the cheapest form of life assurance, since the cover is only temporary and there is normally no surrender or cash-in value available on early termination. If a premium is unpaid, the policy will lapse at the expiry of the days of grace.
Convertible – term assurance
Is a level term assurance with an option which enables the assured to convert it, at any time during its existence, to a whole life or endowment assurance without further evidence of health. The premiums charged for convertible term assurance will be slightly higher than for ordinary level term assurance, to allow for the cost of the conversion option.