What’s covered?

Life insurance pays out if:

• You pass away
• You’re diagnosed with a terminal illness If you’re diagnosed with a terminal illness with a life expectancy less than 12 months, you’ll receive the pay out.

What’s not covered?

Life insurance may not pay out if:

• Your policy has expired
• You stop paying your premiums
• You take your own life
• You’re not honest on your application

If you have people that depend on you, like children or other family members, it’s worth getting life insurance. It can help protect them if something unexpected happens to you.

This is up to you and depends on your circumstances. You can choose a term from five years up to your whole life.

Yes, you can have more than one life insurance policy with different providers. 

Yes. If your circumstances change, you change the amount your family would get. Likewise, if you and partner share a joint life insurance policy and you split, you can separate the plan.

You can also choose to add indexation to your plan. Indexation protects you against rises in the cost of living, so your family will get the right amount of money in line with inflation.

You don’t need to have a medical exam to get life insurance, but you’ll need to tell your provider if you have any medical conditions. If you don’t suffer from any conditions, you won’t need to have a medical exam.

Term life insurance covers you for between five and 70 years. It pays out a lump sum to your loved ones if you pass away within the policy term.

If you’re buying a home, you can get term life insurance to cover your mortgage. If you die before it’s paid it off, the policy pays off the remaining amount. So your family can keep their home and not have to worry about the repayments.

Whole of life insurance lasts your whole life. The policy ends when you pass away, so your family get a guaranteed lump sum. This also means that the monthly premiums are more expensive. Consider whole of life insurance if you need:

• Peace of mind that your loved ones will get a guaranteed payout when you die
• To help your family from overpaying on inheritance tax

Currently, if your estate is over £325,000, inheritance tax is 40% of it’s value (gov.co.uk, 2022). If you take out whole of life and write your policy into a trust, you won’t need to pay inheritance tax on it.