Frequently Asked Questions
1. Why do I need life insurance?
Life insurance can provide a lump sum to your loved ones if you die during the policy term. It can help with the mortgage, household bills and other financial commitments.
2. What happens to my family if I die without life cover?
Your family may have to manage your outstanding debts and household costs without your income. Depending on your circumstances, this could put significant financial pressure on them.
3. How much life insurance do I need?
There is no one-size-fits-all answer. It can depend on your mortgage, debts, income, family circumstances and future financial needs.
4. Can life insurance pay off my mortgage?
Yes. A suitable life insurance policy can be arranged to provide enough cover to repay some or all of an outstanding mortgage if you die.
5. Do I need life insurance if I don't have children?
Not necessarily, but you may still have financial commitments such as a mortgage, joint debts or a partner who relies on your income.
6. What if I already have life cover through work?
It's worth checking exactly how much cover you have and what happens to it if you change employer or stop working. Your employer's cover may not be enough to meet your family's needs.
7. Is life insurance expensive?
The cost depends on factors such as your age, health, lifestyle, amount of cover and policy term. For some people, relatively modest premiums can provide significant protection.
8. What other protection should I consider?
Life insurance is only one part of protection planning. Depending on your circumstances, you may also want to consider critical illness cover and income protection.
9. What is income protection?
Income protection can provide an ongoing income if you are unable to work because of illness or injury, subject to the policy terms and conditions.
10. What is critical illness cover?
Critical illness cover can provide a lump sum if you are diagnosed with one of the specified serious illnesses covered by the policy.
11. When should I review my protection?
It's sensible to review your protection when your circumstances change — for example, when you buy a home, get married, have children, change jobs or increase your mortgage.
12. What's the biggest mistake people make?
Often, it's simply doing nothing.
People insure their cars, homes and phones, yet don't always protect the income that pays for them.
The question isn't “Can I afford life cover?”
It's “Could my family afford for me not to have it?”
Life and protection policies are subject to underwriting, eligibility and policy terms and conditions. Critical illness and income protection policies only cover the conditions and circumstances specified in the policy.