Life Protection Insurance
What type of life Insurance policy do I need?
Choosing the right life insurance policy is extremely important to support your short, medium and long term needs. Furthermore, you may end up paying a higher premium, or worse, obtaining the wrong product may not pay out.
At Roding Estates, we have the expertise to help you make the right decision by giving you the knowledge you need. Our highly qualified and experienced life insurance consultants will help you work out the best type of policy for you and tailor it to your needs and pocket.
We will begin by getting a full understanding of what you want to achieve. It’s important to help you understand how much cover you need, what types of policy are available, which options are best to meet your needs and what premium is affordable for you right now. It’s also important to help you consider how your circumstances can change in the future. We have access to the full market so we can look at every type of life insurance policy from all available life insurance companies in the UK.
Level Term Life Assurance
Level Term Life Assurance is perhaps one of the most straightforward types of life assurance available. Level term means that if you need to make a claim, the sum assured (the amount the policy will pay out) will not vary during the term of the policy.
Unlike other types of cover, the sum assured is agreed at the beginning of the policy remains the same throughout the term of the policy. The policy is set for a fixed numbers of years and the sum assured in the event of your death will not change.
Level Term Life Assurance can cover you for the term of your mortgage and beyond
You can decide exactly how much cover you need you need, this can include your mortgage, existing debts and you can opt for additional cover to allow your family to continue to enjoy the standard of living they are used to, this could include lifestyle choices and future University fees.
Keeping pace with inflation
You can index link your policy and premiums from the outset, you can link the sum assured to the Retail Price Index so as inflation increases the sum assured increases, and this guarantees that your policy retains its value.
Why choose this type of assurance?
If you’re a homeowner with a mortgage and financial dependants, Level Term Assurance should be considered as your minimum requirement for protecting your mortgage and family. The sum assured is fixed and the monthly premiums will not change through the term of the policy unless you opt for index linking your premiums.
Are there any other considerations with this type of policy?
In simple terms, the policy will have a fixed term and once the term has expired, your policy will be cancelled. If you still require life Assurance at this stage, you will need to consider that you will be older and you may have health issues that could increase your premiums if you decide to take out a new policy.
Mortgage life Assurance
Mortgage life Assurance is designed to pay off your mortgage balance in the event of your death. This means that should the policy holder die, the policy will pay off the outstanding mortgage balance.
Who needs mortgage life assurance?
If you have a mortgage and financial dependants, you need mortgage life assurance. This type of policy will pay off your remaining mortgage balance in the event of your death. Should you die during the term of your mortgage, your spouse or partner will be expected to carry on making the mortgage payments even if they can afford to do so. Unless the mortgage was arranged in joint names, the lender could formally demand that the mortgage is repaid. By arranging mortgage life assurance, this type of policy can guarantee to pay out enough to repay your mortgage balance in full.
Do I need mortgage life assurance?
You will need to consider whether or not your dependants would have sufficient capital to repay the mortgage in the event of your death. For the majority of us, the simple answer is no. You will also need to consider that even if your dependants could pay the mortgage off in the event of your death, they will have also lost your income; this could have a huge effect on their finances going forward.
Whole of Life Cover
With whole of live cover, the guaranteed sum assured is paid out of the death of the policy holder; this cover is more expensive than Term Assurance because a death claim is certain to occur.
An agreed proportion of your monthly premiums are invested by the Assurance company and the returns help to fund the final pay out. Subsequently, both the monthly payments and the sum assured payable on death are subject to review and change.
About Whole of Life Assurance
Whole of Life Assurance is the only type of life cover that will guarantee to pay a lump sum on your death. This is because it is the only type of policy that guarantees to remain in force (providing you continue to pay the premiums) for the rest of your life.
Uses for Whole of Life Assurance
- Providing your loved one(s) with a lump sum on your death
- Providing a lump sum to pay for your funeral and to pay off loans
- Providing a lump sum to pay an Inheritance Tax bill
Family Income Benefit
Who should consider Family Income Benefit?
This policy is suitable for couples who rely on each other’s income and who have young families or have older financially dependent children.
Keeping pace with inflation
You can index link your policy and premiums to the sum assured to the Retail Price Index, so as inflation increases, the sum assured increases, and this guarantees that your policy retains its value.
Can my dependants choose to take a Capital Sum?
Yes, if your dependents decide that a capital sum would be better that receiving a monthly income, they can request that the policy is changed after your death.
Are the monthly premiums more expensive?
Compared to Level Term Assurance and Mortgage Life Assurance, the monthly premiums for Family Income Benefit are generally less expensive.
Critical Illness Cover
Can you think of a friend or a family member who has become seriously ill, how about a friend of your parents? One in five of us will suffer a critical illness.
Most of us think that the good health we enjoy now will stay with us forever. Unfortunately, statistics suggest the odds are stacked against us. Statistics confirm that one in five males and one six females will suffer a serious medical complaint at some stage in their life.
What is a Critical Illness?
Each Assurance company provides comprehensive definitions of what they include as a Critical Illness. Please don’t confuse Critical Illness with Terminal Illness. Level Term Assurance and Mortgage Life Assurance includes Terminal Illness cover at no addition cost. If you have a Terminal Illness, this means that you will not recover from the illness and your doctor or consultant have confirmed that your lifespan can be counted in weeks or months rather than years. In these circumstances, your policy could pay our on diagnosis of your Terminal Illness. With a Critical Illness, with ever advancing medical science, you have an ever improving chance of surviving a Critical Illness. Illnesses such as breast or testicular cancers are now curable in many cases but are still considered to be a Critical Illness.
Critical Illness Cover is designed to pay a capital sum or monthly income once you are diagnosed with a Critical Illness allowing you have financial peace of mind whilst focusing on getting back to full health.