{"id":6513,"date":"2025-06-20T10:09:24","date_gmt":"2025-06-20T09:09:24","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=6513"},"modified":"2025-06-20T10:09:26","modified_gmt":"2025-06-20T09:09:26","slug":"an-introduction-to-life-insurance","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2025\/06\/20\/an-introduction-to-life-insurance\/","title":{"rendered":"An introduction to life insurance"},"content":{"rendered":"<div class=\"hd-block hd-block-table\">\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Life insurance is one of the most important financial products anyone can take out<\/td><td>UK insurers pay out a staggering \u00a36.85bn a year on protection policies<\/td><td>The younger and healthier you are, the lower your premiums are likely to be<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\">Contents<\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-list\">\n<ul><div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#do-i-need-life-insurance\">Do I need life insurance?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#what-is-term-insurance\">What is term insurance?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#what-is-a-whole-of-life-policy\">What is a whole-of-life policy?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#how-much-does-insurance-cost\">How much does insurance cost?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#what-is-critical-illness-cover\">What is critical illness cover?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#how-can-my-adviser-help\">How can my adviser help?<\/a><\/li>\n<\/div>\n\n<div class=\"hd-block hd-block-list-item\">\n<li><a href=\"#top-tips\">Top tips<\/a><\/li>\n<\/div><\/ul>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Life insurance may not be at the top of many people\u2019s \u2018to do\u2019 list, but arguably it\u2019s one of the most important financial products anyone can take out, and one of the best ways of protecting your loved ones financially. Here, we\u2019ll provide answers to a few of the questions we\u2019re regularly asked by clients.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"do-i-need-life-insurance\"><strong>Do I need life insurance?<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>If you need convincing that life insurance is a good product to buy, ask yourself this question \u2013 if you were to die, how much money would your family have to live on? Many families would find themselves running short of money very quickly. Your salary would stop, but the household bills would keep coming in.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>A payout from a policy could make the difference between your loved ones facing a financial struggle at a challenging emotional time, and being able to maintain the sort of lifestyle they enjoyed when you were still around.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Even if you are not the main breadwinner, you may still be the primary care giver, providing housekeeping and other home-based services that are vital to your family\u2019s wellbeing and would be costly to replace.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>UK insurers pay out a staggering \u00a36.85bn a year on protection policies including income protection, critical illness and life insurance, and 97.5% of claims are paid<sup>1<\/sup>.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>How much cover do I need?<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>There\u2019s no simple answer to this, as the amount will vary with your lifestyle and your circumstances. You may want to protect your mortgage, cover household bills or provide a lump sum so that your children get a good education. The great thing about life insurance is that it can be tailored to your needs. We can help you assess how much is right for you, depending on your family circumstances.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"what-is-term-insurance\"><strong>What is term insurance?<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Term life insurance policies run for a fixed period of time such as 10 or 25 years and pay out if you die during the term of the policy. There are various forms of cover to choose from, including level term insurance, where the cover remains at a constant level throughout the policy, or decreasing term insurance where the level of benefit decreases over the policy term, although the premiums remain level. This type of cover is typically used in conjunction with a repayment mortgage, with the intention of repaying the outstanding amount if death occurs during the term. During the life of the policy, cover will cease if premiums are not maintained. There is no payment at the end of the term; if you live beyond the term of the policy, the cover terminates.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>If the plan has no investment element it will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"what-is-a-whole-of-life-policy\"><strong>What is a whole-of-life policy?<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Whole-of-life policies, as their name suggests, provide cover that lasts a lifetime. This type of policy doesn\u2019t normally have an end date, so premiums are paid until you die, at which point the policy pays out (sometimes premiums end at a certain age, say 80, but cover continues until your death). This type of cover is generally more expensive than term insurance as the policy will inevitably pay out one day, if premiums are maintained.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"how-much-does-insurance-cost\"><strong>How much does insurance cost?<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The simple answer is probably less than you think. The cost of life insurance premiums has tended to come down over the last few years. For example, a healthy non-smoker aged 30 could get a 20-year level term policy that would pay a lump sum of \u00a3150,000 for as little as \u00a36 per month. It\u2019s a very small price to pay when you consider that having no insurance could mean real financial hardship.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"what-is-critical-illness-cover\"><strong>What is critical illness cover?<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Many people take out critical illness cover when they take out life insurance. It provides additional cover that means that their family would be financially protected if they were to suffer a critical illness and find themselves unable to work. Combining these two types of policy can result in cheaper premiums than if two separate polices were to be taken out. As with life insurance you can specify the level of cover you want. The illnesses covered are set out in the policy and include the major ones such as cancer and heart disease, however illnesses covered can vary between providers and it is vital to check what\u2019s covered and any exclusions that may apply.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"how-can-my-adviser-help\"><strong>How can my adviser help?<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>It can be hard to assess how much life insurance you need on your own, but that\u2019s where we can help you. In order to reach a suitable figure, you will need to discuss and consider how much debt you have, including your mortgage, other loans you may have, including credit card debt, and also check if you have any life cover available as part of your employment package.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>We will spend time assessing your needs and have the specialist expertise and knowledge that\u2019s needed to help ensure you get the right policy in place.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><sup>1<\/sup>Association of British Insurers, 2023<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Critical illness plans may not cover all the definitions of a critical illness. The definitions vary between product providers and will be described in the key features and policy document if you go ahead with a plan.<\/strong><\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h2 class=\"has-x-large-font-size\" id=\"top-tips\"><strong>Top Tips<\/strong><\/h2>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>Starting early saves you money<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The younger and healthier you are, the lower your premiums are likely to be. As you get older you\u2019ll be seen as a higher risk to insurers. Acting sooner rather than later means you\u2019ll be able to lock in a lower premium for the duration of the cover.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>Adopt a healthy lifestyle<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The cost of life insurance is based on a number of factors. These include not only the amount of cover you take out and the length of the policy, but also your age, state of health and lifestyle. Stopping smoking or losing a significant amount of weight could mean you get a better deal with cheaper premiums.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>Get the cover you need<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>People\u2019s insurance needs change when they buy a property or have a family, take on more debt or change jobs. Cover can be combined with protection against accidents, critical illness and unemployment too.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>Joint or single policies<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Generally the cost of two single policies doesn\u2019t cost much more than a joint policy. A joint policy only pays out once and would leave the surviving person without cover. Taking out single policies means that if a claim is made on one, it doesn\u2019t impact the other.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>Write your policy in trust<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Putting your life insurance policy in trust ensures that in the event of your death the proceeds will not form part of your estate when it comes to calculating Inheritance Tax. There is another benefit too, as life policy proceeds can be paid out before probate is granted and therefore provide an effective means of getting money quickly into the hands of beneficiaries, or of paying the Inheritance Tax due before probate can be granted. Putting a policy in trust isn\u2019t usually a difficult or time-consuming process.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>Review your policy from time to time<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>People\u2019s life insurance needs change throughout their lives, for instance when they buy a property, have a family, change jobs, or take on more debt. It\u2019s often at times like these that it\u2019s worthwhile considering combining life cover with protection against accidents, critical illness and unemployment too. Reviewing your policy regularly will help ensure that you always have the right level of cover in place to meet your family\u2019s needs.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-heading\">\n<h3 class=\"has-large-font-size\"><strong>We&#8217;re here to help<\/strong><\/h3>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Finding the right life insurance policy is important; no-one wants to leave their family facing financial hardship if they were no longer around to provide for them. We\u2019re only a phone call away, so if you have queries or would like to discuss the sort of life insurance policies that would work best for your financial circumstances, please do get in touch.<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Life insurance is one of the most important financial products anyone can take out UK insurers pay out a staggering \u00a36.85bn a year on protection policies The younger and healthier you are, the lower your premiums are likely to be Contents Life insurance may not be at the top of many people\u2019s \u2018to do\u2019 list, [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32],"tags":[86],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6513"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=6513"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6513\/revisions"}],"predecessor-version":[{"id":6514,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6513\/revisions\/6514"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=6513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=6513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=6513"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=6513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}