
Life Insurance
Life insurance is a type of insurance that pays out a lump sum on the policyholder's death, giving their dependents financial support following their passing. There are different covers within life insurance, these include, level, decreasing and increasing cover, along with Family in Benefit (FIB) and Whole of Life cover. All these factors can be adjusted and tailored to fit your requirements.
How does life cover work?
Life cover provides a lump sum payment that can help maintain your dependents' standard of living or settle debts, like a mortgage. You select the amount of coverage, typically known as assured and the policy duration (term). If you pass away within this term, the benefit is paid out.
There are three main types of cover:
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Level: The cover amount remains the same throughout the policy term.
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Decreasing: The cover amount reduces over time, often used to protect a repayment mortgage.
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Increasing: The cover increases over time, usually linked to inflation, to maintain the benefit's real value.
How much does life cover cost?
The cost of a monthly premium for life cover can be reasonably priced; however, several factors can influence the cost. These include:
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The amount of coverage you choose
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The duration of the policy
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The type of policy
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Your age
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Your health and lifestyle
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Generally, the younger and healthier you are, the lower the premiums will be.
The importance of life cover?
While life cover is not compulsory, it's essential to consider it if you have someone financially dependent on you. Life cover becomes important as soon as there's someone in your life whom you want to be financially secure if you were not around. It's always a good idea to review your needs when you reach life milestones, such as:
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Buying a property
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Getting married
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Having children
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It's important to ask yourself if your loved ones would be financially comfortable if you were to pass away. If the answer is no, then you should review your life cover needs.
How can Knightwood Mortgages help?
Knightwood Mortgages provides expert advice on life insurance cover, guiding you to the right policy that fits your needs. Our experienced advisers will work with you to secure a life insurance plan that offers peace of mind and financial stability. Contact us to discuss life insurance policies by emailing services@knightwoodmortgages.co.uk or calling 03301 336045.