A good starting point when determining what type of life insurance will work best for you is to consider the purpose of the cover. Here is a quick guide to help you match your goals with the right coverage:
|I want to cover my repayment mortgage||Decreasing Term Mortgage Life Insurance|
|I want to cover my interest only mortgage||Level Term Mortgage Life Insurance|
|I have large debts that I would like to be covered||Decreasing Life Insurance|
|I would like to leave some money to my family should I die during the chosen term in order to maintain their quality of life.||Level Life Insurance|
|I would like to leave some money for my loved ones regardless of when I die||Guaranteed Life Insurance|
|I'm over 50 and would like to leave a small sum for my loved ones||Over 50s Life Insurance|
|I'm over 50 and would like to leave some money to cover funeral expenses||Over 50s Life Insurance|
When you pass away, your family might be eligible for some financial assistance from the government to help cover certain costs and expenses.
Low income families can receive some financial help from Social Fund. However, some or all of this money might need to be repaid by liquidating your estate.
Bereavement payment & allowance
A husband or wife who has just lost their partner may be eligible for £2,000 tax-free bereavement payment. In addition a bereavement allowance can be claimed for up to 52 weeks.
Who is eligible for these benefits?
Eligibility depends on your partner's age when you pass away, their level of income and any other benefits they are receiving. National Insurance contributions are also taken into consideration. Please visit gov.uk for more information.
Employee benefits vary from one company to another, but may include a limited amount of life coverage as well as sickness benefits.
This benefit will provide financial assistance if you are ill for a prolonged period of time. The paid amount is only a percentage of your salary and may decrease the longer you are off work.
Death in Service Cover
This type of benefit will provide a cash sum to your loved ones should you pass away during your employment. It is worth to find out the exact amount of this coverage as it might not be sufficient to ensure the financial security of your family. Moreover, this benefit will be terminated if you leave your job.