What type of life insurance do you need?

Life can be complicated, but getting life insurance shouldn't be. At Life Care, we understand that everyone's situation is different. That's why we offer a variety of life insurance policies designed to meet your unique needs, budget, circumstances, and priorities. The main types of life insurance we offer include:

Life insurance term cover

Firstly, do you need level or decreasing cover? 

It is not as complicated as it seems. The amount of cover you require varies based on your situation. Consider what you want to safeguard, such as a mortgage, and if you want to support your family's lifestyle in the event of your absence. Here's how they work:

Both level and decreasing term policies cover you for critical illness and will pay out if your life expectancy is less than 12 months. Whichever policy you choose can be changed to suit your needs, subject to terms and conditions. In the event of a valid claim on death, the payment will go to your estate or your spouse/partner if you have a joint policy with them. There are no cancellation charges.

Level cover 

Level Cover is a simple form of life insurance that offers a fixed cash payment to your beneficiaries upon your death. This payment can be used to cover living expenses or pay off debts. You can select the amount of cover you need and set a fixed monthly payment for the entire duration of the policy. If your circumstances change, you have the option to modify your policy to ensure your loved ones are better protected. Level term life insurance is a type of level cover that enables you to choose the coverage amount and policy length, with a fixed pay-out and premium for the policy's duration.

Key information:

  • Straight-forward cover. One cash lump sum is paid to your loved ones when you pass away, to pay off debt or use towards living costs.
  • Decide how much do you need

Work out how much money you’d like your loved ones to get when you pass away.

  • Fix you monthly payments

Your monthly payments will stay the same for the length of your policy.

  • Make changes when you like

If your circumstances change, you can change your policy to protect the things you love.

Decreasing cover

Decreasing cover is a type of life insurance that is designed to help your loved ones pay off a repayment mortgage or a long-term loan if you pass away during the policy term. The cover lasts for a specified period, and your monthly premiums are fixed unless you make any changes to your policy. As you pay your premiums, the amount of coverage decreases gradually over time. Since it's tailored to cover decreasing debts, such as a repayment mortgage, the payout amount upon your death will decrease over the duration of the policy, reflecting the amount of the outstanding debt. Therefore, it typically costs less than level cover.

Key information:

  • Think of this cover like a repayment loan. It’s slightly cheaper than level cover, as it’s designed to cover any big debts you’re paying off.
  • Ensure a debt is settled if you die

An outstanding mortgage or debt can be paid off when you die, to help your family, financially.

  • Your cover decreases over time

Just as your debt decreases over time, so does your level of cover.

  • Fix your monthly payments

Your monthly payments will stay the same for the length of your policy.

Click here for more information on these two types of life insurance

At Life Care, we understand the importance of protecting your loved ones in the event of your passing. That's why we offer life insurance policies that provide financial security for your beneficiaries when they need it most.

But did you know that setting up a trust in connection with your life insurance policy can provide even greater benefits?

Clicking here to know more about trust

Protecting your cover from the effects of inflation

Every year, we use the Consumer Price Index (CPI) to measure inflation and update our policies accordingly. If there is no increase in CPI, then the cover amount and premiums will remain unchanged. Although inflation may not be noticeable on a daily basis or for small amounts of money, it can have a significant impact on a life insurance policy. That's why it's important to adjust policies annually based on CPI to ensure that the cover amount and premiums keep up with inflation.

By choosing the inflation-linked cover option, your coverage amount can increase along with inflation, which prevents the pay-out from losing its value in the future. However, this may result in an increase in your monthly payments. It's important to note that if you select this option, the maximum annual increase to your premium is 15%, and the maximum increase to your coverage is 10%.

Over 50s life insurance cover

Over-50s life insurance is a type of life insurance policy designed for individuals who are over the age of 50. It is typically easier to obtain than traditional life insurance policies because:

  • It doesn't require a medical exam or extensive health questions.
  • provide a lump sum payment to the policyholder's beneficiaries upon their death in just 3-5 working days.
  • It can be used to cover expenses such as funeral costs, outstanding debts, or other end-of-life  expenses.

To find out more click here

It's important to note that the best type of life insurance for an individual depends on their unique circumstances and needs, and it's important to carefully consider all options before making a decision.

Joint or single cover?

When looking for insurance coverage, couples can decide between two options. The first is a joint policy that insure both lives, usually on a first-death basis. This means the chosen amount of insurance is paid out if the first person dies during the length of the policy, after which the policy would end.

The second option is separate policies for each partner, which pay out for everyone separately and end their policy after each person's passing but allow the surviving partner's policy to continue.

Learn more about single and joint policies by clicking here

What our life insurance covers?

  • Lump-sum payment

You can choose up to £5 million in coverage, and we'll pay the full amount if your claim is successful.

 Protection in the event of death

If you pass away during the policy term, we will pay a lump sum, it's as straightforward as that.

  • House purchase cover

If you're purchasing a new house and taking out insurance, we offer up to 90 days of free life coverage. The coverage starts after we approve your application and you've exchanged contracts or completed missives, provided that you have given us a future start date that coincides with the completion of your house purchase. Please refer to the policy conditions for complete details and terms.

  • Terminal illness

If you're diagnosed with a terminal illness that satisfies our definition and you're not expected to live longer than 12 months, you can receive an early pay-out of your lump sum. After payment is made, your policy will terminate, and no further claims will be paid.

  • Length of cover

You have the option to select the duration of your coverage, ranging from a short period to up to 50 years, or until you reach the age of 90.

  • A separation benefit

In case of separation from your partner, we offer the option to divide your joint policy into separate policies.

What’s not covered

  • We won't provide coverage if you stop paying your premiums.
  • You can't cash in your policy at any point as it has no cash value.
  • If you pass away outside of the policy term, we won't pay out. It's up to you to decide how long the policy lasts.
  • During the first year of the policy, we won't cover you if you die due to suicide or intentional, self-inflicted injury.
  • If there are any changes in your health, lifestyle, or occupation, and you fail to inform us about them before the policy starts, we won't provide coverage.

Critical illnesses

Critical illnesses cover typically pays out a tax-free lump sum if you are diagnosed with a serious illness that is specified in your insurance policy. The illnesses covered can vary depending on the policy and insurer, but they usually include conditions such as cancer, stroke heart, and heart attack.

To purchase critical illnesses, cover, you typically need to apply and be accepted by an insurance provider. You will need to pay a regular premium for the coverage, and the amount you pay will depend on factors such as your age, health status, and the amount of coverage you want.

If you are diagnosed with a covered illness during the term of your policy and meet the policy's requirements for a pay-out, the insurer will pay out a lump sum to you or your designated beneficiary. The lump sum can be used for a variety of purposes, such as paying for medical expenses, covering living expenses during your recovery, or making necessary modifications to your home or vehicle.

The key advantages of having critical illness insurance coverage include:

  • Financial security: Critical illness cover provides a lump sum payment upon the diagnosis of a serious illness. This can help alleviate financial burdens such as medical bills, living expenses, and loss of income due to inability to work.
  • Peace of mind: Knowing that you have critical illness insurance coverage can give you and your loved ones peace of mind, especially if you have dependents or financial obligations.
  • Customizable coverage: You can choose the amount of coverage you need based on your individual circumstances and may be able to add additional coverage for specific illnesses.
  • No restrictions on how you can use the pay-out: Unlike some other types of insurance, there are no restrictions on how you can use the lump sum pay-out from a critical illness policy.
  • Tax-free pay-out: The lump sum pay-out from a critical illness policy is typically tax-free, providing additional financial benefits.

It is important to note that the specific benefits and coverage of critical illness insurance may vary depending on the policy and insurer. It is recommended to carefully review policy details and consult with a qualified insurance professional to determine if critical illness coverage is right for you. For information about the critical illnesses we cover, click here.