Life Cover from Financial Control
Life Insurance is an insurance product where you agree to make payments to the insurance company in return for a lump sum payment to your family should you die. In most cases, you pay a monthly amount over a set time-frame (20-30 years typically) and the life company agrees to pay your family an agreed amount should you die during this time-frame.
Term Life Insurance
Term Life Insurance is life insurance that covers you for a specified and agreed length of time. In the event of death during this time, a cash lump sum will be paid out. It is particularly important to have for the key years that you might have dependants who rely on your income.
Term Life Insurance is life insurance that aims to provide a lump sum if you die (if you choose life cover) or to provide a lump sum if you are diagnosed with a specified illness during the term of your plan (if you choose specified illness cover).
Our Life Insurance partners have a comprehensive range of Term life insurance policies with a range of optional benefits. A term life insurance policy generally has the following features:
- It pays out a predetermined lump sum on death
- Premiums can be fixed or index linked to ensure that your lump sum is inflation proof
- It is calculated by reference to amount, term, age and in certain circumstances your medical history
- The younger you are – the cheaper the cover. Term insurance rates rise by approx 75% between the age of 30 and 40 but rise by 300% from 40 to 50. This may not be surprising but reinforces the argument for a proper financial plan at a young age.
- The policy is paid out to a deceased person’s beneficiary or in the case of an assignment (eg. mortgage company) it will be paid to the mortgage company with any surplus remaining after the mortgage is cleared being paid to the beneficiary.
- Policies generally have a convertible option enabling a customer to renew the policy without further medical evidence. This costs extra but can be very useful as the years go by.
- Smokers pay higher premiums
A very important part of the life insurance process is honest disclosure of medical circumstances when completing an application. The question on smoking usually asks you if you have smoked during the past year. You must answer this and all other questions honestly.
Choosing the right product
Choosing the right insurance policy is important. It is more important to your dependants. Whether you choose a mortgage protection policy, a term policy or a policy with serious illness cover, it is important that you choose one that meet your needs.
Too often there is a rush to the cheapest product, when for a small increase in premium a far superior product may be available. Our strategy is to identify your needs, select a product type that matches your needs and then select a reputable insurer that can deliver this product at a competitive price.