Individual Life Insurance

Life insurance can give you much needed peace of mind when it comes to protecting your family’s financial security should the worst ever happen to you but finding the right policy can be time consuming.

What is life insurance?

Life insurance policies pay out a lump sum (known as the ‘sum insured’) when the policyholder passes away. There are several different types of policy and the right one for you will depend on a number of different things, for example:

  • How much cover you want
  • Whether you want the sum insured to cover a specific debt (like a mortgage)
  • How much you can afford to pay in premiums each month

How does life insurance work?

Policies work in different ways depending on the plan you have. Broadly speaking, there are two main types of life insurance – term and whole-of-life policies.

Whole of life insurance is a life insurance policy that has no expiry term.  This means that, provided premiums are maintained, it provides a lump sum payment whenever you die for the benefit of your family.  Term life insurance also provides a similar benefit, but it only pays if you should die within the term of the policy.  This means that if you should die after expiry of that term, no benefits will be paid.

It is important to ensure you have an up to date Will, but you may also want to seek advice about placing your policy under a trust to help ensure that the policy proceeds go to the right people at the right time.

Do I need life insurance?

If anyone relies on you financially, then life insurance is definitely worth considering. Leaving a lump sum payment means loved ones could pay off the mortgage and stay in the family home – easing their financial burden at a time of grief.

When should I get life insurance?

If you don’t have dependents, aren’t wanting to leave your property to anyone or don’t have a mortgage, then you may not need life insurance but your circumstances may change.

With that in mind, it’s worth knowing that life insurance becomes more expensive as you get older because of the associated decline in health, so while buying a policy in your twenties might feel premature, it can be far more cost-effective than buying one in your forties.

I’m over 50, tell me about over 50s plans

As the name suggests, you need to be at least 50 to buy an over 50s plan. They work in a similar way to other life insurance products as they pay out in the event of your death but they do have some key differences:

Guaranteed acceptance no matter what your lifestyle and state of health is and there is no medical.

Fixed premiums for the length of the policy which can be good for budgeting.

Find out more

To find out more or to discuss your healthcare options in more detail, the expert team at CLA Healthcare are on hand to help.

Call 01274 717361 or email to find out more.

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