When the Life Insurance Adviser phones you back, he or she, will answer all your questions and ensure that the insurance you've been quoted for, is exactly what you need. This helps you avoid any costly mistakes. It's all part of the LifeSearch’s service.

What does Life Insurance do?

If you were to die or become terminally ill* whilst the policy is in force, the policy pays out a lump sum which is free of income tax and capital gains tax**.

*Subject to your policy including Terminal Illness cover, your policy will pay out on a terminal illness if you are expected to die within 12 months of diagnosis and the policy is not within 18 months of its termination date.
** If the payout is included in your Estate, the money maybe subject to Inheritance Tax - but you can avoid this tax by having your policy "Written in Trust". It's a free service. Ask your Adviser for details.

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Should the worst happen, then life insurance can give that valuable peace of mind that the people who depend on you will be financially safe. This valuable insurance suits most circumstances.

The way that Life insurance works is to provide financial help for surviving dependants should the policyholder die. If in fact there are, at present, no dependants who rely on you financially, then it may be that life insurance is not one of your main priorities. But it’s a very different matter if you there are people who would suffer financially upon your death – a partner, family or business partners for example. In this case you should consider life insurance in order to provide funds to clear the family's debts and to provide financial back-up at this most difficult  time.

With term life insurance you have a product which will pay out a lump sum provided the insured person dies whilst the policy is in force. The insurance cover lasts until the end of the policy and if the insured survives beyond the closing date, then nothing will be payable. Quite often people work it out so that this insurance covers them until a major commitment has been cleared, such as a mortgage or the expected completion of the education of their children.

A few pointers to reduce the cost of your life insurance.

Getting Cheap Term Life Insurance If only they'd had critical illness insurance.

This article illustrates the need for Critical Illness insurance in a rather stark way. If you do not have Critical Illness insurance, we recommend that you read it.

If only they'd had critical illness insurance. This article illustrates the need for Critical Illness insurance in a rather stark way. If you do not have Critical Illness insurance, we recommend that you read it.

Critical Illness Insurance The non-disclosure problem Critical Illness insurance has been getting a bad press. This article explains the reasons and the truth behind the situation. Brokers Online offers cutting edge articles and information about Life Insurance, health insurance and loans. There are various types of Term Insurance plans available.

The cover provided will be dependant on the type of plan which you choose to take out. Here are the types of plan available:

Level Term: The potential pay out of this plan will remain the same throughout the full agreed term of the policy.

Decreasing Term: In this type of plan, there is a gradual reduction of cover during the term of the policy. This can match a liability which is also reducing. As an example the balance left to pay if you have a repayment mortgage. With repayment mortgages your outstanding balance is steadily reducing as you make your repayments each month.

Increasing Term: This plan offers cover allowing for inflation. The amount of cover offered and premiums which you pay increase in line with inflation. This is designed to make sure that the cover which you buy stays realistic and doesn’t suffer from the effects of inflation.

Renewable Term: With renewable term, the insured person can renew or extend the cover for a further period, without the need for a health check.

Family Income Benefit: This will pay the beneficiaries a fixed and regular income for the remaining term of the policy monthly.

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Tip 1 - Cost Comparisons

The life insurance business in the UK is very competitive, which makes the use of a price comparison service, like our own, a really valuable tool. However price is not the be all and end all. Insurance companies make their products slightly different from their competitors, in an effort to reduce price competition.

This doesn’t mean that you can’t keep the premiums down whilst still maintaining the quality of cover which you’re looking for.

For example, if it’s a repayment mortgage you’re looking to insure, it’s well worth thinking of Decreasing Term Life Insurance. Premiums are really competitive and it’s the cheapest form of life cover that you can get.

A price comparison service is really helpful – like ours, for instance.

Stopping smoking can save you hundreds of pounds over the policy term. You’ll pay between 30 and 40 per cent more on your premiums if you’re a smoker.

Don’t pay for unnecessary cover. A combined policy which covers critical illness as well as term insurance pays out one lump sum, as opposed to two payments with separate policies, should there be a critical illness diagnosis, followed by death

Whilst it’s clear that monthly premium costs are going to influence your choice of insurer, it shouldn’t be the only thing you think about.

Tip 2 - Be clear about what you need

Ensure that you’re not paying for cover which you don’t actually need, do your homework on the options or talk them through with the LifeSearch adviser. There are numerous types of life insurance plans and options, to suit various needs.

Tip 3 - Estimate your needs

The sum that your life insurance will provide needs to be enough to pay off your debts and clear the mortgage, in one lump sum or to provide your dependant with an adequate capital sum.

Tip 3 - The Quality of the Policy

It’s really important that you thoroughly check the small print, comparing like with like. There can be so many variations in different UK life insurance policies. This is especially significant if there are added points such as Critical Illness Cover. A Key Facts document will be provided and you should read this with great care and find some of the following benefits:

Guaranteed Premiums mean that the premiums are certain to remain the same right the way through the term of your policy. The other phrase you might find is `Reviewable´ premiums which will be reviewed at certain periods. This tends to be every 5 years or so. This can result in a dramatic increase in premiums at the insurance company’s discretion.

A valuable extra, normally included in Term Life Insurance policies free of charge, is terminal illness benefit. Should you suffer a terminal illness, it will pay the life insurance amount at that time. Don’t confuse this with Critical Illness Insurance.

Flexibility is important. Circumstances change and it’s really important to take stock of your life cover on a regular basis. The ability to alter the cover to suit any changes is reassuring.

By writing a policy “in trust”, any delay in the money being transferred to your dependants will be avoided, also the risk of any charge on the benefit when it comes to inheritance tax. Check that this can be included.

Waiver of premium benefit is a valuable extra. What it means is that if you’re unable to work due to illness for a number of months, it will provide continuity of cover at no cost to you. Check that it can be included in your plan.

Some policies offer counselling for your family in the event of your death.

Tip 4 - Writing your Policy “In Trust”

A life insurance pay out could quite easily increase the value of your estate on your death to an amount which is higher than the inheritance tax allowance. When you consider that anything over the allowance is subject to 40 per cent tax, it makes sense to minimise this liability. By putting the policy “in trust” it stays outside your estate and therefore won’t be added to it on your death. You can obtain a trust form from your insurance company and no cost involved.

Tip 5 - If you’re not sure – Ask!

Taking out life insurance is not complicated. Once you know what you need it’s no more difficult than any insurance arrangement – insuring your car for instance. If your affairs are straightforward there should be no problems. If there’s anything that you think may make them more complex, then the Clicklife adviser is there to give you all the help you need.

The fact is that, in the UK, there are in excess of 150 insurance companies offering literally thousands of life insurance products. Whilst cost is clearly going to be an important factor in your decision, you need to be certain that quality of the claims procedure is as important to your insurer as their sale of the product in the first place. Bankruptcy

166 Million Pounds a day is paid out in pension and life insurance claims. Insurers implement procedures to process these claims on their policies. It is really important that there are no difficulties or obstacles to making a claim, so before making the decision to take out a policy it would be wise to ask the your Adviser about the claims history of that company.

When you’re making a choice and assessing a UK life insurance company, a good place to start is by having a look at the ratings given by a company rating service, such as Standard and Poor’s. They offer ratings on companies and give opinions on the financial condition of major life insurance companies.

All insurance cover is about protecting a risk. Life insurance is no different. The level of the premium that the insurer charges reflects the level of risk that you pose to the company.

With life insurance, the risk simply is relative to the chances of you dying, or becoming ill if this option is included, during the policy term. In order to make an assessment regarding the risk of you dying or a diagnosis of serious illness, the insurance company will need to obtain some details from you. You will need to complete an application form with your personal details and information regarding your health. The health information will be in depth and will include history of family illnesses.

When you fill in the application form, make sure that all questions are answered in full and with complete honesty. Even the most trivial illness and condition should be declared, even if you consider it irrelevant. If you fail to declare something that the insurer deems to be relevant, they can decline a claim. Don’t give them the chance – tell them all. Debt Consolidation

When your application form is received by the insurance company, they’ll check the information you’ve provided and make the decision of whether or not any more medical or personal information is needed to enable them to start the underwriting process.

If they consider that they need more medical information, the insurance company will contact you and ask either you or your doctor to fill in a questionnaire or they may require you to have a full medical examination. The insurance company will pay for further medical investigations.

Your application can proceed once the underwriters have all the required facts. It will be considered for risk, the premium will be worked out and the final terms should be confirmed in writing. The basis will be “standard, “rated” or “declined”.  A “standard” rating should result in the premium being as your original quote. If it is marked “rated” then the premium will be higher, to cover the additional risk found during the underwriting procedure.Should your application be declined, you will be told of the reason in writing, if it is non-medical. If the reason was medical, the insurance company will confirm the medical grounds directly to your GP in a precise way, so that he or she will be able to give you a personal explanation.Once your application is accepted you can relax in the knowledge that you’ve done your best to protect your finances should the worst happen. Enjoy the peace of mind!

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