It is vital to find a life insurance policy that enables you to feel financially secure. Imagine if you could never work again or if you were to suddenly die, where your loved ones would be left to struggle financially. A life insurance policy can provide much needed security and peace of mind.
Life insurance might not feel like one of the most exciting decisions to make but the benefits can be immense in the short term and for the long term.
Should I Consider Life Insurance?
Nothing is certain in life – we all know this as we navigate through the Pandemic globally. We have all learned not to take our own health and the health of loved ones for granted. Health insurance and car insurance are things that we tend to renew regularly without a second thought mostly; so why is it that there are still so many people in the UK who prefer not to prioritise life protection in the same way they do when insuring their pets?
Perhaps you want protection for your debts? Maybe you’d like to make sure your loved ones are taken care of financially upon your passing? You might have been allocated a substantial sum in a will, so do you know what to do?
If you get sick and can’t work do you have income protection in place? Well there are various Life insurance options to help with that. On diagnosis of a critical illness a policy can pay out, and when a policyholder dies a lump sum can be paid out. Term life insurance and Whole of Life insurance are the most common types of life insurance.
What Type of Life Insurance is Suitable for a Single Adult?
At any age young or old, getting life insurance is a very positive action to take. Scenario: You live alone and you have have nobody who relies on you financially. At any age, if you should suddenly die, there will be funeral costs.
Also, if you studied in the past you might still be paying off student debts and if the documents needed your mum, dad or guardian to sign, then they would be liable for the rest of that debt on your passing. You can prevent that by taking out life insurance and choosing the beneficiary or beneficiaries.
For someone who is single with no children, Life Insurance and Critical Illness Cover would be suitable to consider. The younger and healthier you are when you start a policy, the cheaper it will be. Statistically there is a much higher chance of a Critical Illness Cover policy paying out over Life Cover.
If you’re single and not worried about the cost, Whole of Life and Term insurance would be options to consider. Premiums are generally lower when you take out life insurance at a younger age, plus your health and lifestyle will most likely be different compared to if you apply for life insurance in your 30s or 40s for example.
A UK life insurance broker can source Whole of Market to get quotes on your behalf so you can benefit from a policy that works for you to benefit you and your chosen beneficiaries.
Life Insurance for Older Adults
Have your children left home? You might want to consider re-evaluating your situation and your policy. And if you don’t have a policy yet, having a term policy might be of real benefit to you.
Guaranteed Life Insurance can be taken up with no medical tests (subject to terms and conditions) and with this type of insurance it’s rare to be rejected. This type of policy provides death benefit but isn’t first choice for the majority and can also carry higher premiums than other policy types.
There are pros and cons with different types of life insurance; one consideration here is: should you die within the first 2 years of starting the policy, beneficiaries will not receive the full death benefit amount. Whole of Life insurance should also be considered.
What type of life insurance is best for a 60 year old?
When it comes to choosing life insurance when you reach 60 or over term assurance and whole of life would be policies to consider. There are various options available. Term Life Insurance is within the budget for most as it is less expensive. But there are also 3 types of fixed term life insurance policies available, and they are: level, increasing and decreasing.
The process to obtaining these policies if you are over 60 will involve in depth medical questioning from an insurer or a broker, and any fixed term premiums will be generally higher than someone who is healthier and is for example aged over 40.
What is Decreasing Term?
A Decreasing Term insurance policy will pay off long term reducing debt and will help to pay off a repayment mortgage – often used to cover a debt that shrinks over time, such as mortgage repayments. A Decreasing Term Policy will pay out more at the beginning of the policy than it would at the end.
What is Increasing Term?
Increasing term insurance policies have set payouts which you decide when you start your life insurance policy.
What is Level Term?
A Level Term insurance policy will also offer set payouts similar to increasing term. However, a Level Term Policy will pay the same lump sum amount upon death no matter when this occurs during your policy. If you die on the first day of the policy, you will receive exactly the same sum as you would if you died near the end of the policy.
The Difference Between Level and Increasing Term
When you have an Increasing Term policy the payout amount will go up year after year. There is an added cost to this so your premiums will also increase year after year.
What is the Difference Between Over 50s and Over 60s Life Insurance?
There are life insurance policies which don’t require any type of medical checks or medical examination. They don’t payout as much money as the fixed term policies, but they will provide cover for essentials such as costs for a funeral and to pay any remaining bills.
Over 50s life cover is generally Whole of Life Insurance which is designed to payout if you should die no matter how long your policy has been active. Term Life Insurance however, is put into place for an agreed set amount of time. So an Over 50s policy might be suitable for someone who is 60 or over.
Generally when applying for life insurance over a specified term, lifestyle and health questions will be asked, and the next steps may or may not include a medical examination.
Should I Consider Over 60s Life Insurance?
Not everyone in their 60s is retired, so if you are still working full time or part time, you might want to consider a life insurance policy that covers income you are currently bringing in to the household. If you are still paying off your mortgage and any other outstanding debts, then having life insurance will be a safety net for you and your loved ones should you pass unexpectedly.
Life Insurance for a Family
Life insurance is not just a financial commitment for you and your children, it is a very wise investment.
Should you consider ‘Whole of Life’ insurance? Whole Life Insurance means that you would be insured for your entire life, and it is more expensive than Term Life Insurance. This is because you get not just the death benefits, but because your policy will build up a cash value and you would have the option to borrow against the cash value in the future.
Insurance companies offer their own different variations of these types of policies, so searching the market via a life insurance broker to check out all of your options is very worthwhile.
Consider Term Assurance and Family Income Benefit
Family Income Benefit will make sure that your family has an ongoing income should you die. An example of how this would be a less expensive option than level term assurance is to imagine if your income after tax is £1000, setting up a policy that pays out £12000 per year for 15 years would help sa child up to the age of 25.
Family Income Benefit Insurance will give regular financial support to a family if the policyholder should pass away and if a policyholder was to become terminally ill.
Which Type of Life Insurance is Best?
As mentioned previously, there are two main types Term Life and Whole of Life. A life insurance broker will have access to all of the different policies from many different life insurance companies across the UK including all the leading ones.
Those listed here are just the tip of the iceberg. A life insurance broker will be able to source the right deal for you, your budget and your own personal circumstances.
Calculate How Much Life Insurance You Need
Using Term Life insurance as one example. If your annual salary is £30,000 per year, you could opt for a policy that covers 10 times your gross annual salary. So your cover would be for £300,000.
There is good reason for this calculation (there will be other factors as well understandably), and if your husband or wife invests it all and receives 10% return each year, they could effectively replace the £30,000 a year income without ever using the original death benefit amount.
No idea about life insurance, where do I start?
Start by asking yourself what benefits and peace of mind life insurance would bring you. Are you having a baby? Have you planned to get married? You’re self employed and you want to protect your income incase you fall ill and can’t work?
Do you provide finances to support someone else for example a family member? Perhaps you have debts your loved ones wouldn’t be able to pay if you should pass away – affecting the ability to fulfil mortgage repayments?
No matter where you are in the UK, and at what stage you are in acquiring or renewing your life insurance policy / policies, Prime Financial Solutions and Mortgages Ltd can help you.
Prime Financial Solutions and Mortgages Ltd
If you need help with Life Insurance and any of the following, Prime can help – telephone 01942 665 436:
- Life Insurance
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EXPERIENCE PRIME’S EXCELLENT REPUTATION – SIMPLY THE BEST LIFE INSURANCE AND MORTGAGE BROKER IN WIGAN & THE UK
Setting up a life insurance policy is a complex issue. At Prime you always have an exceptional FCA approved team of life insurance & mortgage specialists with you on your journey. We provide excellent one to one services tailor made to your own individual needs and we make your time with us hassle free – we do all the heavy lifting for you. Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan and the UK, on Trust Pilot and online.
Perhaps you have questions you would like answers to? Like..am I too young or too old to get a life insurance policy? Can I write my policy to trust and do you provide advice and guidance? Can we inure the whole family? Can you help with joint life policies? Our dedicated team of experts can answer any of your questions.
Life Insurance is the simplest, most popular and best way to ensure your family is taken care of in the event of your death. You can find out more about us here and if you need help with Life Insurance and mortgages in the UK, Prime can help. Click here to Get a Life Insurance Quote or use our quick contact form. You can telephone our friendly dedicated team 01942 665 436