Life insurance
What is life insurance and how does it work?
Life insurance is used to provide a lump sum if you die. The money can be used for anything but is normally used to pay off a mortgage, to provide childcare or to ease the financial pressures should the worst happen.
Read moreDo I need life insurance?
Life insurance could help protect your loved ones lifestyle if you were to pass away. A lump sum payout (also known as the cover amount) would be paid if you were to pass away while you have the policy. This could be used to pay your mortgage, rent or other bills, giving you some peace of mind that there would be one less thing for them to deal with.
Read moreHow much does life insurance cost?
Cignpost Life cover starts from £5 a month. The cost of cover could depend on the type of policy you take out, your health, your age and whether you smoke or not. Other factors include how long you want your insurance to run and the amount of cover you choose.
Is cover for my mortgage a cheaper option?
This depends on the type of policy you take out. People with a repayment mortgage often choose a decreasing term life policy, which is cheaper because the amount of cover reduces over time with the outstanding balance on your mortgage. A level term policy, where the amount of cover remains the same throughout the term, might be better to fit your needs over time.
Will my premiums change?
Premiums for level or decreasing term policies will remain the same throughout the length of your policy, unless you make changes to your cover amount or choose to take out the increasing cover option.
Read moreHow much cover do I need?
The amount of cover you need will depend on your own personal circumstances, there is no one-size-fits-all answer. The factors you may need to consider include;
Read moreHow long do I need cover for?
If you are using the policy to cover a mortgage, then the policy term should be the same as the remaining length of your mortgage.
If you are using the policy for family protection, people often choose a term that provides cover until their children reach independence. The choice is yours.
What are level, increasing and decreasing term life insurances?
There are different types of term life insurance; they all aim to offer financial protection if the Policy Owner dies (or gets a terminal illness diagnosis) during the term of the policy. They offer slightly different types of cover:
Read moreDo I need life insurance if I have death in service benefit from work?
Some employers provide death in service benefits. This means employees' beneficiaries receive a tax-free lump sum if the employee dies while employed by the firm. Often, the benefit is linked to being part of the company pension scheme. You would need to check the scheme rules to see if this benefit applies to you and if so, how much the lump sum would be. It is possible the amount will be lower than the cover needed to provide for your family, and it cannot be assigned to repay a mortgage.
Read moreDo I need a single or joint policy?
Life insurance can be purchased as a single policy which covers one person, or a joint policy which covers two people.
Read moreIs my life insurance payout taxable?
The payout isn't currently liable for Income tax or Capital Gains tax. However, if your estate is large enough, there may be an inheritance tax liability. This could change if the legislation changes.
