What is life insurance?
Life insurance in UK, Critical illness and life insurance. Live for today, but make plans for tomorrow. If you die away while your policy is in effect, life insurance helps provide financial security for your family. It enables you to leave a financial legacy that will help the people you care about maintain their standard of living and continue to pay their debts.
One person (a single policy) or two people (a joint policy) may be covered by life insurance. However, since it only pays out once, the coverage expires after we’ve resolved a claim.
You may typically obtain life insurance without having health issues. When we inquire about them, you’ll need to let us know about them, and there might even be a medical examination (which we’ll cover). The cost you will pay is determined by the amount of coverage chosen and your unique situation.
How does life insurance work?
Not about you, obviously. They are the center of attention. Our coverage, which is term life insurance, will pay out a sum of money if you pass away or are found to have a terminal illness according to our definition and your anticipated life expectancy is less than 12 months. Before selecting your cover, consider the following points.
Additionally, if you’re not familiar with the terminology used in life insurance, you may look up any phrases in our glossary.
Do you need life insurance?
Consider how much money your loved ones could require to maintain their level of living in the event of your passing. This may include expenses like bills, mortgage payments, tuition, and any other loans you are required to pay back.
How long do I need cover for?
Evaluate how long your children will require your financial support or the possibility of your spouse leaving. Consider our Over 50 life insurance if you are older than 50 and prefer coverage that lasts your entire lifetime rather than a set period of time.
Joint or separate life insurance policy?
You can purchase a joint policy if you and your partner want combined coverage. This only pays out once, so if the first person passes away, the second person won’t be covered.
Getting individual policies for each person is an additional option. Therefore, after we pay out for one person, their policy will expire; nevertheless, the policy for the second person will remain.
Learn more about choosing between joint and separate policies in this post.
Watch our video to learn more about our life insurance’s ins, outs, and in-between.
Types of life insurance
Learn more about the type of insurance that is best for you and the people you love.
1. Life cover:
Scottish Widows’ life insurance policy. For the benefit of your loved ones and your mental health.
What is life cover?
If you pass away before the conclusion of your term, life insurance pays out a cash lump sum. It might provide financial support to your loved ones when you pass away.
Do I need life cover?
If the following applies to you:
- You are the main earner in your family.
- you have long-term debts like a mortgage.
- and you want to leave something for your loved ones after you pass away.
- because you have dependent children or other family members.
- who depend on your income.
Critical illness cover:
Support for you and your loved ones when you need it most.
What is critical illness cover?
If you are diagnosed with a condition covered by your policy before it expires, critical illness insurance pays out a cash lump sum.
It may enable you to concentrate on your personal health and well being while assisting you and your loved ones with day-to-day expenses.
Do I need critical illness cover?
Critical illness insurance may be appropriate for you if:
- You’d have trouble keeping up with daily expenses.
- You wouldn’t have any savings or perks from your job to meet your expenses.
- if you were out of work for a while due to illness.
- If you were critically ill and unable to work.
- you would want to receive a cash lump sum payment so that you could concentrate on your health and well-being.
Mortgage cover:
Find out how to safeguard your mortgage so that your loved ones can continue to live in their home even if you are not there.
What is mortgage cover?
Like a typical life insurance policy, this sort of protection operates similarly. If you pass away before the insurance expires, you will get a cash lump payment. Thus, if something were to happen to you, it could help your loved ones in paying off the mortgage.
Do I need mortgage cover?
You should consider getting mortgage life insurance if:
- You have a mortgage with payments.
- You are the primary breadwinner in your family and are responsible for supporting children or other loved ones.
- You want to ensure that they can continue to live in your home after your passing because they would find it difficult to pay the mortgage without you.
How much does it cost?
The amount you pay each month depends on the duration of your policy and the size of the cash lump payment that is awarded when a claim is made. Additionally, the cost may vary according to your age, health, and way of life.
What’s the right time to get life insurance?
The major changes in your life can be an excellent opportunity for you to consider how you can protect your loved ones and yourself from the unexpected.
Changing jobs:
You might wish to consider how any changes to your income might influence the level of protection you and your loved ones might require.
Having children:
Having insurance could ensure that your children are safeguarded in the event that something were to happen to you.
Getting a mortgage
Your insurance policy may provide a cash lump amount in the event of your passing to help your loved ones in paying off the mortgage.
Planning your funeral:
Although it’s unpleasant to consider, funerals may be pricey. Your policy might assist your loved ones in covering these expenses.
Being a carer:
Others may be dependent on you or your money. Your cover may also be shielding them.