Life insurance from Clifton Wealth

Life insurance is one of those things few of us like to think about – and that’s not only because it involves thinking about the inevitable. It’s also because some find it complicated. But if you want to help provide financial security for your dependants when you pass away, it’s worth looking into.

Introducing life insurance

Life cover can be used to help pay off the mortgage and support the family in case either the key earner or homemaker passes away.
Joint policies can be taken out to protect you and your partner to help the ones you leave behind cope financially should the worst happen.
Depending on the type of policy you have, it can pay out a lump sum or provide a regular income. The key is to identify what you want life insurance cover for, because that will help determine the best life insurance policy for you – term insurance or whole of life, for example. Remember that the first life insurance quote you get may not be the best for your circumstances.
So what types of life insurance are there?

  • Term life insurance
  • Whole life insurance
  • Investment-type life insurance

Costs

Cheap life insurance may not set you back as much but it may not provide the cover you need from your policy. So it’s vital that you check the details of the cover you’re considering to ensure it’s suitable for your needs.
Remember that your premiums may be higher if, for example, you smoke, have a complex medical history poor medical history, do a risky job or regularly take part in dangerous sports and hobbies such as mountaineering.
Check whether your life insurance quote offers premiums that are fixed for the term or regularly reviewed.

Some things to check

Don’t ignore the small print. This will spell out what’s covered and what’s not covered. It’s normally included in a Key Facts or Key Features document, and you should compare various policies’ features to determine which one is best for you.
Always read the terms and conditions of the policy so you understand what you’re agreeing to.

  • Think about the exclusions. Your policy may not pay out if you take part in dangerous sports, die from drug or alcohol abuse or have an existing medical condition.
  • Confirm the age limits on your life insurance quote. Some policies will stop providing cover once you reach a certain age.
  • Terminal illness. Some term insurance policies may pay a lump sum if you’re diagnosed with a terminal illness during the policy.
  • Consider the tax implications. Inheritance Tax may be payable on any sum paid out, unless you put your plan in a suitable trust. This can be a complicated area and tax policy can change from one year to the next so it’s important to get financial advice if you’re considering this.
  • Flexibility. Does your life insurance policy allow you to skip a payment or two without penalty? And what happens if you want to cancel altogether?
  • Cash-in value. Check whether your policy has one or not. Not all do and you may decide that you don’t want one.
  • Extra benefits. Some policies may offer additional benefits such as critical illness cover.

To discuss your Life Insurance requirements contact Clifton Wealth today and contact Peter Harvey.