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Best Life Insurance Providers
you for visiting our Life Insurance section of our web site. Here we
provided you with direct links to the
major national Life Insurance
Providers and Brokers in the UK. Our objective is to show you
the best deals as possible in the Life Insurance, critical illness
cover, mortgage protection, health insurance, Tax Planning &
more. At present, we have provided links to the institutions that we
are affiliated with. As we grow and get more affiliations and/or
partnerships, we will be adding more links of many nationally known
to terms with the loss of a loved one is
tough enough without adding financial hardship to the burden. For such
reasons, most people choose to have some form of protection, such as
Life insurance offers financial protection to replace earnings. It can
pay the mortgage and household bills and provide your family with
financial security just when it's most needed.
- At a glance it is difficult to put a price tag on someone's life.
There are ways one can asses or work this out. We can call it Financial
Check. In order to determine the amount of life insurance your loved
ones would need, we have outlined few steps:-
all your household income and
all your outstanding debts like mortgage, car
and other personal loans.
your employer provide death in service
benefit. If so how much?
have any other life insurances? If so, add all
work out how much your loved one would need to
have a reasonable standard of living for the future. Remember, if you
have young children then you'll need to cover the cost of childcare in
the event of the death of a non-working partner.
out whether your dependants would require a
lump sum? If yes how much?
out whether they would need an income - how
much and for how long.
find out what types of Life Insurance policies
are on offer.
Life insurance, also known as life assurance, pays out a lump sum on
the death of the person insured. It can be taken out on a single or
joint life basis (see below). There are two types of life insurance:
term insurance and whole life. The easier and simple one is term
Choose The Cheapest
insurance is the cheapest form of protection. It pays out a fixed
amount if you die within a specified period defined as the "term". It
is not investment based, and therefore aquires no surrender value. In
other words, at the expiry of the term there is no maturity or cash
value. If you stop paying the premiums during the term, the policy
ceases and there is no cash available. If death of an isured person
occurs outside the term, there's no payment, i.e. if you had a five
years term assurance policy and you died in say sixth year, there is no
You can choose to have
permanent term insurance or decreasing term
insurance. With permanent the amount you are insured for remains the
same throughout the chosen term period. Some insurance companies offer
renewable and convertible term insurance policies. Renewable gives you
an option to renew the olicy at the end of term without needing to
provide any further medical evidence. Convertible gives you an option
to convert to a whole life or with profits policy. With the decreasing
term insurance, the sums insured decreases. This type of policy is
often used to pay off a mortgage, known as Mortgage Protection Policy.
and life insurance Though endowment
is virtually dead now and is not offered by most
insurance companies. However, should you happen to have an endowment
mortgage, life insurance is automatically included as part of the
package. On the other hand, should you have a repayment mortgage, the
cheapest option is Decreasing Term Life Assurance (also known as
mortgage protection). This type of policy is designed just to pay off
your outstanding mortgage debt. The more you pay off over time, the
lower your potential insurance payout.
Policies If you require
monthly income, then you can look into family income
benefit policies, which will pay regular amounts to your dependants
instead of a lump sum. Income can be paid monthly, quarterly or yearly,
depending on the policy.
Life Insurance There are two
types - with profits and without profits
Whole Life Policies are designed for those who want life insurance
cover for an indefinite period instead of a fixed term period. On
death, a whole life policy pays out either a minimum guaranteed sum or
the investment value that's built up from the money you put in. But it
also has a cash value, which you'd get back if you cancelled the
policy. Cashing in early years may not have much or any cash values.
Whole Life Policy premiums are more expensive than term life premiums.
The reason is that such types of policies are certain to pay out. With
some policies you pay the premiums until you die, while others stop at
a certain age. Whole life policies are often used for tax planning (see
Policies Couples can go
for separate or joint policies. A joint policy will pay
out on the death of the first person. It may be cheaper but is only
really suitable if you would need the same amount of cover for both of
you. It's worth shopping around and comparing quotes for both single
and joint cover.
Taxation On death of a
person, life insurance payouts become part of your
estate. If your estate is valued at more than a certain level
(£285,000 in the 2007-8 tax year), then you will have to pay
inheritance tax (IHT).
It is possible to write your life insurance policy in trust so that the
money doesn't form part of your estate from an inheritance tax point of
view. The payout can then be used by the person who inherits it to pay
any IHT due on the rest of your estate. The most types of policies used
are whole life second death policies. Second death policies are mostly
taken out by married couples on joint life basis and is payable to your
children/beneficieries on the death of the second life. This is a
complicated area, and you should seek expert advice of a tax planner.
insurance cover The cheapest way
to get the right cover to suit your circumstances is
to go through a qualfied Financial Adviser. Our online links will get
you to fill basic enquiry form upon which an advisor will contact you
to discuss further. You can buy online but it's advisable to talk to an
policies have a 14-day cooling off period in which you can
examine the policy and change your mind if you choose.
for the Uncertainties
is difficult to protect oneself and the loved ones against the
uncertainties of life. However, a wide range of insurance policies are
available that can be useful financially in the event you have lost
your ability to work through serious illness, injury or accident.
Dig through your records and rumble through your paperwork. Chances are
you may already have something that you have forgotten about. This
could be a mortgage payment protection policy (MPPI) that you took out
when you arranged your mortgage. Check out your (and your partner's)
earning capacity as well as check with your employer(s) what protection
they would offer in the event of illness, especially long-term illness.
Add up any savings you have. Now you should have an idea of how much
money you may require in the event you or your partner or both together
are unable to earn for a time or pemanently.
The main type of insurance to cover your income if you are unable to
work through sickness, accident or injury is income protection
insurance, also known as permanent health insurance (PHI).
This pays out a regular tax-free income (normally 50-65% of your
earnings). Depending on your occupation or type of work you do,
payments usually start after a deferred period of between four weeks
and a year, during which time you'll need to depend on other resources.
The longer your deferred period, the lower your premiums.
Income protection can be expensive. The premiums you pay will depend on
your age, the type of work you do (low risk or high risk of injury),
the amount of cover and the deferred period.
Covering sudden ill
Critical illness insurance pays out a single tax-free lump sum if
you're diagnosed with one of a defined list of serious or
life-threatening conditions. Policies vary but typically the list will
include cancer, heart disease, stroke, multiple sclerosis, and total
and permanent disability.
This cash can help ease financial worries for you and your family while
you are being treated, which, in the event of a serious illness, can be
a lengthy process. You could use the cash to pay off a large debt such
as your mortgage.
The younger you are, the cheaper this cover costs, because the less
likely you are to develop a serious illness.
It's best to see this policy as an addition to permanent health
insurance (PHI)/ income protection insurance. It doesn't pay out for
accident or injury or many common problems such as back trouble or
stress, only serious illness. Always make sure you know which illnesses
are covered and which ones aren't.
If you simply want to be able to pay your mortgage if the worst
happens, you can take out mortgage payment protection insurance (MPPI).
MPPI - also known as accident, sickness and unemployment insurance
(ASU) - offers peace of mind by paying off your mortgage if you are
unable to work following an accident, sickness or unemployment.
It usually only pays for 12 months (occasionally 24 months). Rates vary
enormously, so if you want the cover always shop around and don't just
opt for the policy your mortgage lender offers.
Always check the exclusions (the things that aren't covered) when
comparing policies. Compare prices too with permanent health insurance
(PHI), which may offer a better all-round deal.
Payment protection insurance is designed to cover the cost of personal
loan repayments or minimum monthly credit card payments if you are ill
and unable to work, or are made redundant. If your debts are small or
you could cover repayments using savings or help from relatives, this
might be an unnecessarily expensive option.
Look hard at accident insurance You get often get personal accident
insurance offered free to encourage you to buy other financial
products. So don't be surprised that what's covered may be limited.
Some simply pay a modest lump sum if you suffer an injury specified in
the policy such as the loss of an eye or a limb as the result of an
accident. Look for what's not covered.
In Conclusion - The
Replacing income can be an expensive business, so think carefully about
which type of insurance best suits your financial situation. If you're
not sure then seek independent financial advice before signing on the
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