What is Life Insurance?
Life Insurance
(also known as Life Assurance, Term Insurance,
term assurance) is a simple way to protect
your family financially in the event of your
death. If you die during the term of the policy
or suffer from a terminal illness1 then the
policy will pay out a lump sum of money to
your family or nominated beneficiaries.
A terminal illness is
usually classed as having less than 12 months
to live. This may differ between providers.
Most providers don’t cover terminal
illness in the last 18 months of a plan.
How Much Life Insurance do I Need?
You can decide how much Life Cover you require,
or you can contact one of our experienced
advisors on 0800 028 3545. Many people take
out Life Insurance to cover debts and liabilities,
for example mortgages. It is also common
to take out insurance to cover your family's
finances, for example four times your annual
salary would mean that your family could
continue their standard of living for four
years.
What is Critical Illness Insurance?
Critical Illness
Insurance (also known as critical illness
cover) is a policy that pays out a tax free
lump sum of money upon diagnosis of a specified
critical illness. Unlike life cover, Critical
Illness Insurance pays out to yourself.
It is more expensive than life cover, however
you are far more likely to suffer a critical
illness policy than to die.
What is Income Protection
Insurance?
Income Protection
Insurance (aka PHI, Permanent Health Insurance,
Income Insurance or Income Replacement),
provides a tax free income until your selected
retirement age (usually to between 50 and
70) if you are unable to work due to an
illness or disability.
How Long will Income
Protection Insurance Pay in the event of
Incapacity? In the event of claim, income
protection policies can continue paying
until your selected retirement age. For
example a 20 year old male who took income
protection insurance out until age 65 could
claim on his policy for 45 years if required.
How Much Income Protection
Insurance do I Need?
Most income
protection companies in the UK offer a maximum
of 50-65% of your annual salary, however
based on current legislation you do not
pay tax on these benefits. To assess how
much cover you require, we recommend that
you figure how much money you require per
month, i.e. mortgage payments, rent, bills,
food, etc. and use this as a starting figure.
Most people insure around 50% of their income,
however some people only decide to cover
mortgage payments.
Why use Mortgages Inc?
We are a
leading Insurance Broker and experts. We
search the life insurance market for the
best quote for your circumstances. As
we are not tied to any one life insurance
company, we search 100s of providers for
the best deal. They aim to beat any other
quote you may already have received.
Our service is quick, free and without
obligations.
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