Protection Insurance

Life Insurance

Life Insurance

What Is Life Insurance

Life insurance is a policy that helps your family pay for the everyday expenses that are associated with death.  If you are married, but are not the main income earner, your family would be able to keep the same lifestyle they are used to without you.

 

Life insurance is something that everyone should have. It’s a necessity because even if you do everything right, you can’t predict the future. Life insurance is a financial safety net that will help you prevent financial hardship for your family after you pass away. Life insurance can be confusing, but it doesn’t have to be.d

Today, we live in a world where we can't predict what will happen to us tomorrow. Anything can happen to us, and it's impossible to be prepared for every single scenario. While we can't prepare for everything that happens in our lives, we can prepare for the future by having life insurance.

Life insurance is a contract between a policyholder and an insurance company. The insurance company agrees to pay a specified sum to a person or persons designated by the policyholder upon the death of the life insured individual. The insurer usually charges a fee, or premium, which is paid to the company in exchange for this agreement. In the event of the death of the insured person, the life insurance company will pay a claim to the beneficiary. The life insurance claim may be paid in a lump sum or as an annuity to the beneficiary.

 

This type of insurance provides a safety net for your loved ones and protects them from financial hardship. Life insurance is a must-have for every adult. 

 

You pay a monthly premium for life insurance. Your age, health, lifestyle and how much cover you need, as well as the type of policy you have, will all determine how much you pay.

 

Life insurance is a great way to protect your loved ones financially, but it’s also a major investment. Over a period of years, even a slightly lower premium can yield major savings. So speak to one of our advisors today to help you get the best value from your life insurance policy.

What normally affects the price of Life Insurance cover?

Medical History

Medical history is one of the biggest factors that affects the cost of life insurance. It’s always best to lock in cover while your health is good. If you put off getting or updating your cover and you’re taken ill, your cover may become more expensive, or you may be denied a policy altogether.

Smoker Status

Life insurance is significantly more costly for smokers, so quitting is likely to save you money. You will be classed as a smoker if you have had a cigarette or nicotine replacement at any point in the last 12 months. If you think it’s time for you to quit, have a look at our top tips to help you out, here.

Age

Cover usually gets more expensive as you get older as you pose a greater risk to the insurer. This means that it is often possible to get better value by locking in the price of your insurance at an early age.

Occupation

Some dangerous jobs and hobbies result in a higher premium. Whilst this shouldn’t affect most applicants, it may be worthwhile to be aware of any changes in underwriting in relation to occupation which could affect you.

BMI

Your height and weight (which are used to work out your BMI) can make a difference to how much you pay. It is important that you are as honest and accurate as possible with this at the time of your application to ensure your policy pays out.

If you want to know more regarding Life Insurance and how it can help then speak to on of our advisors today

F.A.Q.s of people wanting a mortgage protection

If you have an interest-only mortgage, your outstanding mortgage loan stays the same until you repay it at the end of the mortgage term. Level Life Insurance could cover this type of mortgage.

 

But if you have a repayment mortgage, Decreasing Life Insurance may be more appropriate. The amount of cover reduces broadly in line with the decrease in your outstanding mortgage loan.

If you choose level or decreasing cover, your monthly payments are guaranteed to stay the same for the duration of your policy. For decreasing life insurance, premiums are set at the start of the policy to consider the decreasing amount of cover you’ll need during the policy term. Premiums for decreasing cover are often cheaper than other types of life insurance.

If you have a mortgage, you might want to take out life insurance. Then, if you die before your policy ends, the lump sum can be used to help pay off the outstanding mortgage balance, so your family can stay in their home. Some lenders will ask you to take out life insurance as part of their mortgage offer.

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Croft Myl

West Parade

Halifax 

HX1 2EQ

Call us: 01422 354011

info@woodhallmortgages.co.uk

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