Life Insurance FAQs
What is life insurance? 🤔
Our life insurance cover pays out a lump sum if you pass away during the term of your policy. It is a way of helping your loved ones cope financially when you die. It is intended to minimise the financial impact and provide a safety net to your loved ones when you are no longer around.
Do I need life insurance?
This is entirely dependent on your individual circumstances. If you are single with no dependents relying on your income, then you may not need life insurance.
However, if you have loved ones who may struggle to cope financially if you passed away, then life insurance would offer them much needed help at a very difficult time.
How much does it cost? 💷
This is dependent upon a few things, which include your age and health status. It is very personal to each individual and will typically start from as little as £9 per month. But a healthy 22 year old could cost as little as £5 per month.
The most important thing to take into consideration is your age. Taking out a policy that lasts 40 years, when you’re 20, will cost around £9/month. Whereas, taking out a policy that lasts 20 years, when you’re 40, will cost you £41/month. So, taking insurance out when you’re younger will save you thousands over the course of the policy. Buy young, buy long.
How old do I need to be to qualify for life insurance with Bequest?**
You must be between 18 and 65 to qualify for life insurance with Bequest.
How much cover do I need?
You’ll need to consider a few things to determine this. This could include any outstanding debts or mortgages you currently have or may have in the future, and what you want to leave to your beneficiaries. Some people take out extra cover to be able to put their kids through school or university, or help with their first home. It’s completely up to you and depends on your personal circumstances.
We currently cover up to £500,000.
When should I take out life insurance?
We believe you should take life insurance out as soon as possible. Not only is life unpredictable, but the younger you are, the cheaper the rates, which saves you money! 🥳
What does life insurance cover?
Life insurance is a way of helping your loved ones cope financially when you die. It is intended to provide help to your loved ones when they can no longer rely on your salary or income.
For more information, check out our article “What Is Life Insurance and How Does It Work?”
Can I make changes to my policy?
Yes, life changes and so can your policy! 🪄 You could start off with a small amount of cover while your financial responsibilities aren’t too great, before increasing when you get more financial responsibilities, such as a mortgage or kids.
What’s more, with a policy from us, we offer guaranteed increase options where you can increase your cover amount, without having to retake your medical questions. We’ll also use our base rates from the age you first took out your policy to calculate your new premium, not your current age. Even more reason to buy it younger! Please make sure you read our policy wording so you understand the rules in regards to our policies.
Can I get life insurance for myself and my partner? 💛
Yes, however, at Bequest we think everyone should have separate policies. If you have one policy, after the payout, the surviving partner would be left without life insurance. They would then have to purchase a new policy at a much higher rate later on in life. By purchasing separate policies, you are paying almost the exact same amount each month, but you are able to keep your policy if your partner dies, and your family gets double the payout should you both pass away.
Two single policies allows you to be more flexible. You can even insure yourselves for different amounts or for different amounts of time.
What happens if I decide to emigrate halfway through my policy?
At Bequest, we require payment from a UK bank account. This means that as long as you have a bank account in the UK with funds, you could be living in Antarctica 🐧 and we would still cover you. Also, in support of a terminal illness claim, you can live anywhere in the world but the doctor/consultant that signs off has to be based in one of the following countries: United Kingdom, Isle of Man, the Channel Islands, any of the countries of European Union, Switzerland, Iceland, Norway, USA, Canada, Australia or New Zealand.
Can I cancel my policy?
You can cancel your policy within the first 30 days for a full refund on any premiums you’ve paid into. After this, you can cancel at any time without the refund. If you wish to cancel, just get in touch with any member of our team or through the chat on our website.
What is a trust and should I use this option?
A trust is a legal arrangement that allows you to leave your assets to whomever you would like. The person in charge of this trust is named as your trustee, and is responsible for your trust until it pays out (i.e. upon your death or when the beneficiaries turn 18).
The main benefit that comes with putting your assets into a trust, is that the trust would not be liable for Inheritance Tax (IT). An estate valued over £325,000 would be taxed up to 40% with IT. To learn more, check out “Will My Family Have to Pay Tax on My Life Insurance Payout After I Die?”.
When will my cover start? ☂️
Your cover will start right away! As soon as you receive the confirmation screen at the end of the flow, you will be covered. You will also receive an email with your policy documents and your policy will show as active on your dashboard.
Why is my first bill more than I expected?
We bill from the start of each month. This means that if you sign up on any other day of the month, you will be charged the rest of the month plus the first full month in advance. For example, if you take your policy out on the 16th June, you will be billed on the 1st July for the month of July and the 15 days of June.
If however, you take out a policy within 10 working days of the end of the month. Your first payment will actually be two months away! This means your first payment will be made of the remaining days in the month you bought the policy, all of the next month and all of the following month in advance.
For example, if you buy your policy on the 25th of June, your first payment will be on the 1st of August. Your first payment will be made up of the 5 days in June, all of July and August in advance. All future payments from then on will be equal to your monthly policy amount.
This is due to us not being able to set up your direct debit with the banks quick enough before the next month rolls around. In order to cater for this, and to make sure you are still covered, we set your first payment a month later.
What are my payment options?
We accept direct debit payments from a UK account that you are authorised to set up direct debits from.
Can I choose where the money goes when I die?
Yes, you can write your wishes, including your life insurance payout, into your will. For example, you could leave £100 to a specific neighbour or your favourite plant pot to your colleague. 🪴
Don’t forget that you can also write your will with us, which can give you a bit more reassurance that everything happens in the way you would wish.