5 of our frequently asked questions about life insurance
Chester, Cheshire
01244 264 866

5 FAQs we get asked about Life Insurance

5 FAQs we get asked about Life Insurance

life insurance policy - man with child on shoulders

Shopping for Life Insurance doesn’t have to be a minefield – we are here to answer any of your questions. There are certain questions that seem to get asked a lot so we’ve covered them here for you.

Who needs life insurance?

People take out life insurance for a variety of different reasons. It all depends on your individual circumstances. Everyone should think about life insurance at some point during their lives. Typically, the sooner you take out a life insurance policy, the more affordable it will be. Younger buyers are seen as less of a risk to the insurance provider.

Many people decide to buy life insurance when they take out a mortgage on their home. Or they get a policy when they start a family. It is there to provide financial protection if the worst should happen.

Even if you are single with no dependants, life insurance is worth considering. It may simply help to cover your funeral expenses when you die. It’s also a way of future-proofing your financial situation should your family circumstances change.

What are the different types of life insurance?

There are a variety of different insurance policies which can suit different circumstances. It’s worth doing further research on the different types of insurance to work out which one will suit your requirements.

Term insurance is one of the most popular policies and is taken out for a set period of time. One example of this is a policy that runs for 25 or 30 years alongside your mortgage.

The main benefit of term insurance is that it is usually more affordable than some other policies, due to it being active for a limited time. Of course, this policy will not offer you a guaranteed pay out. If you were to die following the expiry date of the policy your beneficiaries would not be able to make a claim.

A whole-of-life policy would offer a guaranteed pay out, whenever you die. This is quite often taken out to ensure that there is money left behind for dependents or used to cover funeral expenses. These type of policies often pay out smaller amounts and can be quite expensive so it’s worth considering the pros and cons before you purchase.

Read more about the different types of life insurance

Who should I name as my beneficiaries?

You may be asked to name a beneficiary when you take out your life insurance – this is the person that will benefit from the pay out after your death. You can name anyone, but typically most people would name their spouse or partner, or perhaps a child if the policy was to benefit them in the future. If you do not name a specific beneficiary, the lump sum pay out would go to your estate which would then be divided up as per your will. You can read more about choosing beneficiaries in our life insurance guide here.

Can I still get life insurance if I have a medical condition?

Having pre-existing conditions shouldn’t stop you from being able to get a life insurance policy altogether, however it may come with some limitations. You may be asked to undergo a medical health check prior to agreements, and your condition may be excluded from the policy.

The most important thing is to always make sure you declare any medical conditions on your application. If you don’t disclose existing conditions, then you may invalidate your policy.

Can I get a joint policy with my partner or spouse?

If you are looking at ways of saving money on life insurance then you may be looking at the possibility of a joint policy with your partner or spouse. However, make sure you consider the benefits of a joint policy versus two single policies before opting for this route.

A joint policy covers both parties, but only pays out on the first death. After that the policy becomes null and void. If the surviving partner still wanted life cover, they would need to take out a brand new policy. At a much later date, this could be much more expensive. If you have dependants then it could prove to be better value to purchase separate policies from the start.

Whatever your questions are regarding life insurance and what policy will be right for you, please contact our life insurance specialists who will be able to talk you through your options.

Leave a Reply

Your email address will not be published. Required fields are marked *