Life & Critical Illness Cover

Provide financial support to you and your loved ones when you die and protect yourself in the event of critical illness.

Life & Critical Illness Cover

What is Life Insurance?

Morbid as this will sound, Life Insurance is exactly what it sounds like – insuring your life and paying your designated beneficiary a sum of money in the event of your death. This sum should cover various costs, as well as possibly leaving your loved ones a gift. So you are assured that your family will be taken care of after you are gone.

However, some Life Insurance policies also pay out on diagnosis of terminal or critical illness, in order to help you and your family cope at a difficult time.

What is Life Insurance?

What is covered by Life Insurance?

As with all insurance, Life Insurance can vary a little from policy to policy. However, Life Insurance cover is a little more straightforward than other insurances. You don’t have to know if your policy covers flood damage or just fire damage, as you would with a Home Emergency policy.

Funeral costs

Funeral costs

The average cost of a funeral in 2021 was over £4,000. Cremations cost a little under £4,000 with burials setting you back up to £5,000. Knowing that these costs are covered and not something your family will have to worry about at an already difficult time can give you peace of mind. Many people also feel better knowing the send-off they want is already covered.

Your mortgage

Your mortgage

If you have a mortgage that you are still paying, your Life Insurance cover should clear this. This way, you know that your family will be protected and have a home, without having to worry about the payments.

Other outstanding debts

Other outstanding debts

Any loans or credit card debt that is outstanding at time of death should be cleared by the Life Insurance pay out. This way, your family don’t have to continue paying off any debts incurred in your lifetime.

Support for your family

Support for your family

Once all of the costs are covered and debts cleared, anything outstanding will go to your family, so you can be assured that financial burdens will be lifted.

Why is Life Insurance particularly critical for landlords?

Having Life Insurance is not legally required to get a mortgage, however many lenders make it a precondition for their mortgages. Life Insurance not only protects your family in the future, but it protects the lender’s investment, so without Life Insurance, you may find it tricky to get a mortgage

As landlords have more properties than residential homeowners, it makes sense that they would also need cover to protect their families in the event of death, by clearing outstanding mortgages and any other debts.

When should I get Life Insurance?

A lot of the population doesn’t have Life Insurance, but if you’re wondering if you should, let’s take a look at the best times to get it.

When you buy a home

When you buy a home

As mentioned above, a lot of lenders make Life Insurance a requirement of your mortgage, so you’re most likely to get a policy when you buy your first home, whether it’s your residential home or a buy-to-let.

When you get married

When you get married

Getting married includes a certain amount of combining your finances. These days, many couples keep their money separate, but have a joint account for shared expenses like the rent or mortgage payments, bills and food.

When having children

When having children

If you decided not to take out a Life Insurance policy when you got married and you didn’t have to get one when you bought your first home (or you haven’t yet bought your first home), having children should give you pause.

When you retire

When you retire

We’ve said it before and we’ll say it again – you can get Life Insurance at any time! However, if you’ve reached retirement without getting any Life Insurance, or you’ve let yours lapse, now is the time to revisit it.

How would my family benefit?

Death is a difficult time for those left behind. It’s emotionally draining for loved ones and can take its toll on mental and physical health. On top of all of that, there are a lot of paperwork and legal hoops to jump through. 

Your family will need to look at getting a death certificate and organising the funeral, before turning their attention to the house and belongings you’ve left behind. 

How would my family benefit?

Do I need single or joint cover?

This really depends on your relationship status!

If you are married or in a long-term relationship, you might want to consider getting a joint insurance policy for a number of reasons:

 Do I need single or joint cover?

How is Life Insurance calculated?

Unlike a mortgage, which is calculated based on your income and your outgoings, Life Insurance isn’t calculated this way. Instead it is based on:

Age

Age

We’re sure you won’t be surprised to hear that the younger you are, the cheaper your policy is likely to be. This is purely because it can be taken out over a longer term.

Health

Health

Your insurance company will need to have a good idea of your health before they cover you. You would have to be honest about any pre-existing conditions you have that could affect your policy. The healthier you are, the less you are likely to pay.

Lifestyle

Lifestyle

Your lifestyle impacts your health, so this is an important factor in calculating your cover and premiums. Lifestyle includes things like whether or not you’re a smoker, but also includes any dangerous hobbies you might have.

What questions will I be asked in order to get Life Insurance?

There are many questions that you can be asked when you call up about Life Insurance. Some brokers will only ask your age and your smoker status, however, many will ask a lot more! 

Height and weight

Height and weight

Make sure to take your measurements before you call so you have the information to hand.

Smoking status

Smoking status

They’ll want to know if you smoke, or have ever smoked or used tobacco.

Use of recreational drugs

Use of recreational drugs

This includes use of marijuana.

Medical diagnosis

Medical diagnosis

Let your broker know if you have received any diagnoses in the recent or distant past.

What types of cover are there?

There are various kinds of Life Insurance cover, and it’s worth taking some time to think about what your goals for Life Insurance are and planning accordingly. 

Whole of Life Insurance

Level Term Life Insurance

Decreasing Term Insurance (Mortgage Life Insurance)

Increasing Term Insurance

Renewable Term Insurance

Joint Life Insurance

Death in Service

What is critical illness cover?

What additional cover can I get within my Life Insurance?

While Life Insurance is one of the most straightforward insurances out there, there are some additional elements you can add to it. Additional cover you can add includes:

Spouse

Spouse

You can add your spouse to an existing policy, making it a joint policy, which would pay out in the event one of you died.

Child

Child

You can add any of your children to your policy. Make sure you understand what this means for the payouts, as the policy may not pay out in the event of your death if it has already paid out for the death of your child.

Accident

Accident

You may want to make sure that you have cover in the event of an accident, which isn’t classed as critical illness. If you were seriously injured in an accident, the same worries about covering the mortgage and bills would apply, so you might want to look into getting this additional cover.

Frequently Asked Questions

While we’ve covered an awful lot of information about Life Insurance and why and when you should get it, we’re sure you still have some questions. So we’ve aimed to answer the most common ones below.

Should I update my cover?

How long should my Life Insurance be for?

How can I drive my Life Insurance premiums down?

Is my age a factor?

How much is Life Insurance?

Why won’t my Life Insurance pay out?

Best Life Insurance quotes?

So now that we’ve convinced you to make sure that you have Life Insurance, you’re probably itching to get a quote. 

If you have more questions that we haven’t covered here, or you’d just like to speak to a person, you can book a call with our great advisors, who’ll be able to answer your questions and get you a quote that’s right for you in minutes.

Best Life Insurance quotes?