Why Should I Purchase Life Insurance?
The simple answer is to give you and your family peace of mind. Unfortunately, death is a reality of life, and it often happens when families are ill-prepared to deal with the loss of the primary wage earner. At the very least, this will ensure that your burial costs are handled and your family is provided with some financial security in the upcoming months.
What Types of Life Insurance Policies Are Available from Claybrooke?
We offer two main types of policies for our clients:
Level Term Life Insurance – term life insurance is one of the more popular types because of its affordability. You pay a fixed premium over specific years for a lump sum payment in the event of death. When the term has expired, however, the insurance policy also terminates.
Mortgage Life insurance is a policy meant to cover the cost of your mortgage. Over time, the cover decreases to mimic the mortgage.
We also offer joint policies for anyone seeking cover with their spouse or partner.
How Much or How Little Life Insurance Should I Purchase?
This is going to depend on your particular circumstance. For instance, if you are single, you may only want a policy that will cover your burial costs. However, if you are married with children, you would probably want a more significant policy that would cover burial, mortgage payments, and future financial security for your spouse and children.
How Long of a Term Do I Need?
This will once again depend on the exact purpose of the insurance. If you want to ensure the mortgage is covered, you should take out a term replicating the remaining mortgage payments. Some younger couples will take shorter terms to cover themselves only until they expect to be more financially secure. Contact one of our insurance specialists to discuss your particular needs and budget for the best answer.
What Are the Life Insurance Premiums?
This will vary with the type and amount of coverage. Term policies can be very inexpensive. For instance, a policy to merely cover burial costs could cost less than £10/month.
If My Employer Offers Cover, Do I Need Additional Life Insurance?
This would depend on how much coverage the employer is offering. Generally, they offer a policy based on a percentage of your salary. We suggest that you sit down with your employer or human resources representative to discuss the policy. If that coverage is enough for your needs, then you would be okay. However, if the policy falls short, you would want to secure an additional policy on your own.
Am I Permitted to Change My Life Insurance Cover During the Term of the Policy?
This is something you should discuss with your provider before purchasing the policy. The policy can automatically include clauses to cover circumstances such as marriage or increased mortgage payment. If you already have a policy and cannot change it, you may have to cancel the policy and secure a new one based on your current and future needs. If this is the case, be sure to secure a policy that will allow future changes if needed.
Does the Policy Always Pay?
Generally, every policy will have some type of exception or exclusion rule where it does not pay out. Circumstances that could cause the policy to be null and void are drug or alcohol abuse and suicide.
Should I Purchase Critical Illness Coverage?
Critical illness cover is becoming one of the more popular forms of cover because there is the potential for a payout prior to death. Since this type of insurance pays out once a person becomes critically ill, it offers some financial relief during the most trying times. Family members can often secure private medical care or take extra time off to be with their loved ones with the insurance payout.
If I live through the term of the policy, Will I still receive my benefit?
No, you will not receive any benefit once the term has expired for a term life insurance policy. This is why term life insurance is so much cheaper than whole life insurance, which continues to cover once the policy payments are completely paid off.