Posted on: 2nd February 2015
Here’s a quick FAQ covering the fundamental basics offor those considering applying for a policy:
Death isn’t the kind of subject anyone really wants to think about, but is at the same time a subject not to be ignored.
With a life insurance policy in place, you can give yourself and your family peace of mind by knowing that if the worst should happen, those you leave behind will not have any financial burdens to bear.
What If I Already Have a Policy?
As is the case with every type of insurance across the board, it can often work out highly beneficial to occasionally consider switching to a new provider. The reason being that insurance providers are always fighting for new business to such an extent that newcomers inherently get the best deals. It costs nothing to compare the market and shop around, so it’s always worth a look.
Are Life Insurance andthe Same?
Both terms are often used to describe the same thing, though there are in fact differences between the two policy types. The difference lies in when a payout can be expected should something happen to the policy holder – the right policy for you will be advised by the insurance provider.
What Are “Term Life Insurance” and “Whole of Life Insurance”?
Most standard life insurance policies are term policies, which means you enter an agreement with a finite date established at the time of application. If something happens to you while the policy is active, the agreed payout is triggered. By contrast, a whole of life policy offers a guaranteed payout at the time of the policy holder’s death – this latter type being morethan insurance.
What is Over 50s Insurance?
There are certain types of life insurance that are age specific and exclusive to those that meet the necessary age criteria. In the case of over 50s life insurance, it’s usually a policy type that’s open to those between the ages of 50 and 80, most likely not requiring a medical check-up to qualify.
What’s Critical Illness Cover?
Critical illness cover may or may not be included as standard and therefore should be checked. Where applicable, critical illness cover promises to pay out a set cash sum in accordance with the policy’s terms should the policy holder by diagnosed with a terminal or debilitating illness during the course of the policy. It could be paid out in the form of a lump sum or a monthly contribution.
Do I Have to Declare Existing Illnesses?
In a word, yes. While it’s possible to successfully apply for and obtain a life insurance policy without disclosing existing medical conditions, doing so constitutes fraud. Worse still, when and where the policy is called upon in the event of death or critical illness, it will be declared null and void with no payout being made at all. For multiple reasons therefore, honesty is critical in establishing the right policy.