Life Insurance

What is life insurance?

Life Insurance (Life insurance) Life insurance guarantees a payout in case of your death. It is one of the most popular and tested ways of financial protection for our family if the worst case scenario happened.

Example of a calculation

35-year old man, non smoking. Job: Garage - Mechanic. Financial protection in case of death

Life insurance amount	£100,000
Monthly premium	£8.46
Guaranteed term of insurance	30 years
Insurance company	Zurich

Calculation date 22/03/2023 (Calculation for illustration purposes only)

What does life insurance include?

Life insurance is a policy that pays out if the client dies. Moreover, most of the insurance companies includes a payout in case of terminal illness of the client.

Where and when does the Life Insurance work?

Life insurance will usually protect you 24h wherever you are (except countries where war takes place).

The insurance policy is active immediately after provider accepts your application. Most of the life insurance policies does not have a grace period. The application procedure is carried out online hence the waiting time is very short and you can provide the protection to your family within a few days.

Sometimes the waiting time may be longer for example if the provider requires additional medical reports from your GP.

What does the cost of the insurance depend on?

There are many elements that influence the cost of the Life Insurance. Same of this: your age, health condition, whether you are a smoker or not, your job. Another factor is the amount of the insurance you want to be insured for- the higher the amount of the insurance, the higher the cost of the life policy in the UK. The term is another factor that impacts on the price- the longer the term, the higher the price.

Please remember that the life insurance policy in the UK can often be expanded or linked to another insurance policies to get discounts. You can also lower the amount of the insurance and lower the cost.

How often do you have to pay the premiums?

Normally, the premiums are paid once a month via Direct Debit. The provider collects the premium once a month from your account. Depending on your preferences, you’ve got the right to decide of the date of the premium collection.

What are the types of life insurance?

In the UK there is a very complex system of insurance. There are a lot of providers and institutions offering life insurance and usually everybody will find something for themselves. The standard option is a term life insurance life insurance - the minimum term of the insurance is 1 year, and the premium is a minimum of £6

Another form of insurance is over 50's life insurance which is insurance dedicated for people between 50 and 75 years old. This is an excellent alternative for older people who want to protect their own family in the event of death and costs of funeral.

There are other forms of insurance products in the UK for example joint life insurance-which is suitable for partners and married couples.

Do you have to identify the beneficiaries of the life insurance policy?

This is a very important part of the insurance which will help us avoid delays in the payment and the money will be paid to the right people. In majority of life insurance policies it is recommended to prepare a Trust which is a document that lists the beneficiaries. Moreover, a correctly prepared trust will allow the beneficiaries to avoid paying the inheritance tax. All our clients receive assistance in preparing a trust for their life insurance.

Do you have more questions? Contact us!

Trusts are not regulated by the Financial Conduct Authority.