Why Should I Purchase Life Insurance?
The simple answer is to give you and your family peace of mind. Unfortunately, death is a reality of life and it often happens when families are ill prepared to deal with the loss of the primary wage earner. At the very least, this will ensure that your burial costs are handled and your family is provided with some financial security in the upcoming months.
What Types of Life Insurance Policies Are Available from Claybrooke?
We offer two main types of policies for our clients:
Level Term Life Insurance – term life insurance is one of the more popular types of insurance because of its affordability. You pay a fixed premium over a specific amount of years for a lump sum payment in the event of death. When the term has expired, however, the insurance policy also terminates.
Mortgage Life Insurance – this type of insurance is a policy that is meant to cover the cost of your mortgage. Over time, the cover decreases to mimic the mortgage.
We also offer joint policies for anyone looking to have cover with their spouse or partner.
How Much or How Little Life Insurance Should I Purchase?
This is going to depend on your particular circumstance. For instance, if you are single, you may only want a policy that will cover the costs of your burial. However, if you are married with children, you would probably want a more significant policy that would not only cover burial, but also mortgage payments as well as providing future financial security for your spouse and children.
How Long of a Term Do I Need?
This will once again depend on the exact purpose of the insurance. If you want to make sure the mortgage is covered, you should take out a term that replicates the remaining term of the mortgage payments. Some younger couples will take shorter terms to cover themselves only until they expect to be more financially secure on their own. For the best answer, contact one of our insurance specialists to discuss your particular needs and budget.
What Are the Life Insurance Premiums?
This will vary with the type of coverage as well as the amount of coverage. Term policies can be very inexpensive. For instance, a policy to merely cover costs of burial could cost less than £10/month.
If My Employer Offers Cover, Do I Need Additional Life Insurance?
This would depend on how much cover the employer is offering. Generally, they offer a policy based on a percentage of your salary. We would suggest that you sit down with your employer or human resources representative to discuss the policy. If that coverage is enough for your needs then you would be okay. However, if the policy falls short, you would want to secure an additional policy on your own.
Am I Permitted to Change My Life Insurance Cover During the Term of the Policy?
This is something you should discuss with your provider prior to purchasing the policy. There can be clauses automatically included in the policy to cover circumstances such as marriage or increased mortgage payment. If you already have a policy and do not have the ability to change it, you may have to cancel the policy and secure a new one based on you current and future needs. If this is the case, be sure to secure a policy that will allow changes in the future if need be.
Does the Policy Always Pay?
Generally, every policy will have some type of exception or exclusion rule where it does not pay out. Circumstances that could cause the policy to be null and void are drug or alcohol abuse and suicide.
Should I Purchase Critical Illness Cover?
Critical illness cover is becoming one of the more popular forms of cover because there is the potential for a payout prior to death. Since this type of insurance pays out once a person becomes critically ill, it offers some financial relief during the most trying times. Family members are often able to secure private medical care or simply take extra time off to be with their loved ones with the insurance payout.
If I Live Through the Term of the Policy, Do I Still Receive My Benefit?
For a term life insurance policy, no, you will not receive any benefit once the term has expired. This is the reason term life insurance is so much cheaper than whole life, which continues to cover once the policy payments are completely paid off.