Better Information Retention

 

 Permanent Life Insurance

What is this post about? 

Permanent life insurance is a type of life assurance that provides a regular income and financial stability, if you are diagnosed with an illness or die. A permanent policy will cover the family against future financial needs for as long as the policy is in place.

Why use it? 

Permanent policies offer great peace of mind, especially when you are unsure about any other types of insurance or cannot afford extensive medical care. It has been proven that people want to maintain their lifestyle even at times of sickness or death and permanent policies allow you to do so with ease.

How they work? 

The rates on permanent life insurance provide a constant cash flow of income so, if you are diagnosed with a serious illness or die, your family is financially covered. The rates vary according to the type of policy you buy; for example term cover will be cheaper than permanent and cash-value policies are more expensive than term cover.

When to buy? 

Permanent life insurance is very attractive when you have made careful calculations about its expense and the amount of money your family requires in the event of sickness or death. However, while there is great peace of mind to be gained from permanent policies, it should not be used when an alternative type of insurance can meet your needs more effectively and cheaply.

How to buy? 

When buying permanent life insurance, compare policies carefully and mindfully. Since rates vary considerably among different insurers, it is advisable to shop around before settling on one policy. Remember that choosing a higher rate will provide more cover for your family but also cost you more money.

The following are some key things to remember when choosing a policy:

- How much cover do you want? A lot of people overestimate how much cover they are going to need in the event of illness or death. It is always better to buy a policy that is too small and later increase it than one that is large enough from the start and expires before its time.

- Is the rate you are getting enough cover? It is always better to increase the coverage by adding a rider than to reduce it by opting for a lower rate. You may not know how much the illness will cost your family in the long term but you do know that it will be expensive if it is serious.

- What extras would you like? Some insurers offer riders which cover additional expenses such as travel and education costs for children. Decide if these are important to you and whether they can be covered by extra payments on top of your policy premium. This will help you decide if the rider is worth paying on top of your premium or whether a more general one would be more suitable.

- Are you aware of your family's medical history? Make sure you have considered the impact that a health problem could have on your family's future. If you or your partner has any medical issues, this will substantially impact on the price of your policy.

- What life expectancy rate is used? This is important because some insurers use higher rates for men than for women. If you are a male with health issues, check whether this would affect the price of your policy.

- How will it affect other policies if I take up permanent life insurance? When purchasing a policy, you need to think not only about how the new cover will affect your own finances but also how it might impact other existing policies, such as mortgage or car loans.

- What are the likely costs of sickness or death? Do a cost analysis of the kind of treatment you might need in the future and its cost. The lower your premium, the higher the amount you can set aside in case of sickness or death (although it will be difficult to know exactly how much your family would need).

- Are there any tax advantages? Permanent policies do not attract extra taxation if they are taken up by married couples and are paid for by one spouse. If you live apart from your partner, this may impact on how much cover you buy and, depending on their circumstances, it may be advisable to consider a different type or type of policy for them.

Don't know where to start? 

If you are unsure about which type of life insurance will best suit your needs, you can ask an independent financial adviser to help you make the right choice. This is especially advisable if your needs are complex. Financial advisers have extensive knowledge and experience in life assurance and can help you make an informed decision, based on both your individual circumstances and the specific policy you choose. Most importantly, they will be able to compare different policies from different insurers so that the product actually meets your needs rather than those of the insurer or sales person.

Source: http://www.independent.co.uk/life-insurance/will-i-lose-my-life-policy-if-i-move,1617007.html

Permanent life insurance doesn't cost the same as you may have found in other media or from a family member. You need to take time to look at the policies and the rates that are offered to find out that real value for money, as you can get a very large amount of coverage at a very low cost.

 

15% discount on all products if you pay by cheque/postal order, subject to availability 

If you pay cash it will be 20% plus £5.00 administration fee (£50.00 minimum, £5.00 administration fee applies).

(plus VAT if applicable)

If you pay by credit card, it will be 20% plus a 3% surcharge for all purchases (minimum £50.00, 3% +VAT if applicable)

(plus VAT if applicable)

If you pay by debit card, it will be 20% plus a 3% surcharge for all purchases (minimum £50.00, 3% +VAT if applicable).

(plus VAT if applicable)

         (Minimum Guaranteed Term £25000; Maximum Amount up to Maximum Amount of Policy - see terms and conditions page. Guarantees apply for the duration of cover in each case.

You need to take time to look at the policies and the rates that are offered to find out that real value for money. We can help!

This includes:

         (Minimum Guaranteed Term £25000; Maximum Amount up to Maximum Amount of Policy - see terms and conditions page. Guarantees apply for the duration of cover in each case.

The term assurance covers what most people would know as life insurance but there are also other types of assurance such as Critical Illness or Income Protection Insurance. All policies give you a certain amount of security knowing that if something happens this will be looked after by your chosen provider.

The most common type of life assurance policy is a Term Insurance Policy. This gives you security for a set period of time, usually ten years, and then the policy will either end automatically or be paid out at a later date. Most policies charge a small yearly premium to make sure that the insurance is there when you need it.

         (Minimum Guaranteed Term £25000; Maximum Amount up to Maximum Amount of Policy - see terms and conditions page. Guarantees apply for the duration of cover in each case.

Conclusion: Life assurance can be an amazing financial tool, especially if you have a family to look after. With a little research, you will find that there are cheap life insurance policies available to ensure that your family is looked after should anything happen to you. There is also the option of how you want the money paid out to your loved ones which can vary from an annual amount for the rest of their lives, or a lump sum. Whatever happens in your life and whatever type of cover you choose, it is always important to take time, do some research and make sure that you are being looked after properly.

You need to take time to look at the policies and the rates that are offered to find out that real value for money.