Did you know that every 22 minutes a child loses a parent in the UK?
Life insurance helps in many ways. However, life insurance is not just about you.
It’s really about those you love 💛
So should Life Insurance be called Love Insurance? Sure! Why not?!
Not only would your family and loved ones be left without your presence in their lives, they would be left without your care for them, emotionally and financially. Grief can be compounded by worries about money and making ends meet. Taking out a life insurance policy could quickly and simply change that for your family.
As well as the grief of bereavement, some families also have to contend with a financial crisis. This may mean the change of educational plans, even the sale of a family home. The provision of life insurance is one of the greatest acts of love anyone can give to their family 🎁
How does life insurance work?
Life insurance is a policy taken out for a term, or period of time. So, you might choose a term which lasts until your youngest child reaches eighteen years of age, or until a mortgage is paid off.
In the event of your death, and in basic terms, a level policy would pay out a fixed sum of money and the policy is usually paid by a monthly premium or instalment. To learn more about the different types of life insurance, read here!
How are the premiums calculated❓
Insurance companies will take into account a set of different factors to calculate the premium including. Not every company is the same, and we sure aren’t.
- Age – The older you are, the more expensive the policy usually is, as the risk of health conditions increases. So get life insurance early and long!
- Lifestyle – Drinking, smoking and weight can increase the premium.
- Health – You will have to answer questions and reveal any pre-existing medical conditions. Failure to do this could invalidate the cover. Being honest is important.
- Family medical history – If you have a history of serious illness within the family, this can impact on the price of cover as well.
- Occupation – If you are a professional bomb disposal technician your premium is going to be higher than someone who works in a bank. In general however, your occupation won’t matter.
- Length of term – The longer you buy, the more you will save over time. This is because you won’t need a new (and more expensive) policy later on in life.
Amount of cover – As you might expect, the more cover you want for your family, the higher your premium will be.
Key points to remember about life insurance
- Shop around for cover and don’t just be lured by flashy television commercials. You could end up paying much more than you need to.
- If you have a term policy running for a long period of time then you should review your policy regularly. This is to ensure it will be enough to cover your family’s needs as they change.
- When taking out a policy, it pays to be honest. 98% of all life insurance policies are paid out. 👏
Life insurance is an incredible gift that you can give to your loved ones. Take a few minutes today and got covered with us at Bequest!
Life insurance can be confusing, but it doesn’t have to be. Read “What Is Life Insurance and How Does It Work” for more information. One of our values as a company is to be transparent. If you have a question, send an email or ask our chat, we want to be as open with you as possible.