Ten Top Life Insurance Facts

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It’s amazing the number of little things that we at Quick Quote Protect know and take for granted about life insurance that other people just don’t know.

Bundled together they form a fun ten facts guide!

1 – Putting your life insurance into trust is free!

There’s no extra cost in putting your life insurance in trust, and it comes with all sorts of benefits – the main one being that there’s someone out there to help your beneficiaries use the money wisely. Ask our advisors about trusts.

2 – Life insurance is subject to inheritance tax…

If you have a large life insurance policy that’ll help your loved ones financially or a substantial estate for your dependants to inherit, then they are going to be subject to inheritance tax of 40%!

3 – …unless you put the life insurance in trust!

Yes, by putting your life insurance into trust, you move it outside the inheritance tax problem and make the full amount available to your beneficiaries.

4 – Indexing your life insurance policy will make it stand the test of time.

Ever thought about the fact that when your life insurance policy pays out, the actual numbers might not mean the same as they do today? £250,000 today will buy a reasonable house, but is it going to do the same in 2050? Or 2070? By tying your life insurance policy to the retail price index (RPI), you allow for many of those inflation effects and leave your loved ones with an amount that closer resembles its current value.

5 – Multiple life insurance policies could be the way to go.

Rather than thinking of life insurance as a single thing, start to look at it as a collection of multiple plans for different purposes – decreasing term assurance to cover the mortgage, whole of life to ensure the funeral is paid for, a level term plan for seeing the children through university, or critical illness cover to provide if you can’t work... In fact, here’s a whole guide on the subject.

6 – A decreasing term plan to cover your mortgage is going to save you bucketloads!

If your main concern is making sure your family don’t lose their home if you are no longer there to pay the mortgage, then a decreasing term plan is perfect and the prices are significantly lower than a level term plan for a comparable amount.

7 – Every day that you delay starting your life insurance policy costs you money.

With the cost of premiums guaranteed, you are going to get the best and cheapest deals the younger and healthier you are. Putting off buying life insurance for another day is just increasing the cost of your premiums for little reason – and once you do get it, you’ll wish you’d put it in place years ago!

8 – Some policies come with colourful benefits.

Did you know you can get a life insurance policy which offers a free cinema ticket every week as part of its package? What about a discount on sportswear to entice you to the gym? Or even half price membership to a gym?

Ask one of our advisors about policies with added extras and see if you can make your day-to-day life a little brighter.

9 – Life insurance cover cares less about how you die than you think.

Most people believe that insurance companies will do everything they can to get out of paying the life insurance, but they’d be very wrong. With an emphasis on helping your loved ones left behind, life insurance providers pay out approximately 98% of policies – the 2% they don’t pay out are usually due to incorrect information given at the time of application.

Contrary to general belief, life insurance will often be paid out no matter how you die – including victims of terrorism, suicide, natural disasters etc.

10 – Our advisors are more helpful than you expect!

With a genuine passion for life insurance and a desire to help their clients, our advisors will give free advice without bias or prejudice of any type. Give us a call today at no obligation and put the perfect cover in place to protect your family financially, should a tragedy happen.