When you organise cover with our team you will get the following benefits:
Compare providers
Our expert advisors can help you find the best policy from many large providers such as Legal & General, Aviva, Vitality and Scottish Widows. We also have access to solutions from various smaller specialist providers.
No fee to advise & arrange
We don't charge to discuss your requirements; there are no fees for us to research and explain your cover options, we don't even charge to arrange the cover, organise a trust and even write your Will at the same time - no fees whatsoever!
Will Writing Services are referred to our Sister Firm. Neither Dunham McCarthy Financial Services Ltd or PRIMIS are responsible for the service received. These services are not regulated by the Financial Conduct Authority they are instead regulated by the Institute of Professional Willwriters and have alternate consumer protection.
Explain products & options
Critical Illness cover, serious illness cover, accident & sickness, income protection - with so many options let us explain each and help you find the right cover for you and your family.
Health based recommendation
When we make a recommendation we take into account your health, family history and lifestyle, this means that when we give you a price, it is less likely to be adjusted following the underwriting process.
Review existing policies
As part of the advice process we always take a look at any existing policies that you have in place and review them to ensure they are the most comprehensive and competitive available.
Free last will & testament
When you take a policy with Dunham McCarthy Mortgages our colleagues at Mylastwill.co.uk are happy to provide a full, legally binding last will and testament without charge - it's all part of the service!
Policies written into trust
To minimise delays and reduce Inheritance Taxes, we can write you policy into a discretionary trust, again no charge!
What is Life Insurance?
Life insurance is where you take out an insurance policy against your life, with a view to it paying out a lump sum, upon your death, with monies going to your family or repay debts. This is usually loved ones such as your life partner to help them to be financially secure in your absence.
Policies are usually paid monthly for the term of the policy or the full term of your life – depending on what type of Life Insurance you go for.
The concept of life insurance is to free your family (as far as is possible) from any debt / loans you might leave behind and to make your family as long-term, financially secure, as is possible, in your absence.
What are the Types of Life Insurance?
1)
Term Life Insurance
You choose the length of the term and the amount of cover and pay the monthly premium for the duration of the policy.
2)
Whole of Life Insurance
You choose the amount of cover and the policy will pay out upon your death – provided you have maintained your monthly premium payments.
3)
Over 50’s Life Insurance
As the name suggests, you can only apply for this once you are 50 or over. Once again, you choose the amount of cover you want and pay the set premiums each month. This type of cover does not require medical underwriting.
Proceeds of these policies can be used for payment of, or towards, the cost of a funeral, following the death of the person who is insured. You could pay out more money in premiums than the policy pays out. This policy is not a savings plan and has no cash-in value. Due to inflation, any amount paid out may not buy as much in the future as it would now and may not cover the full cost of a funeral. If you stop paying premiums before age 90, the cover will end, and you won't be entitled to claim any money back.’
Do I Need Life Insurance?
Whilst you can get life insurance from the age of 18 (some companies / brands might have differing age restrictions), whether you require it or not depends very much on your own personal circumstances. Life insurance becomes an important requirement if:
a)
You have a mortgage or other debts – A policy can be designed to clear the remainder of your mortgage, upon your death, lessening the financial burden on your family.
b)
You have a life partner and any children / dependents – This is especially relevant if you were the main earner in the family. Besides paying off the mortgage, you could provide your partner with a lump sum to help with ongoing living expenses. It will also help fund any children you leave behind and perhaps help to pay for their future educational needs such as collage / university or training fees.
If you want your family to continue the lifestyle, to which they have become accustomed, it’s a good idea that not only do you choose an option that covers the remainder of the mortgage, but also, one that that’s index linked to take into account inflation.
How Much Does Life Insurance Cost?
Whist you can pay as little as £5 a month, the average premium in the UK currently stands at around £30 a month. However, there are many influencing factors that effect the amount of your monthly premiums:
a)
Age
generally the younger you are, the healthier you are and the less you might have by way of personal debt (mortgage, loans e.t.c) – therefore, you are considered a much lower risk and this is reflected in the amount of cover required and the premiums paid. By contrast, a person in their 50’s, with a considerable mortgage left to pay and possibly some health issues might find themselves paying around £100 a month.
b)
Health
This naturally plays a huge part in the cost of the premiums because of possible risk of illness and death. For example, an ongoing illness such as heart or blood pressure issues will have an effect; so to will things like smoking or drinking.
c)
Family History
Your family’s medical history is reviewed by insurance providers because it can be an indicator of your future health. If for example your parents or siblings have struggled with a particular illness, your premiums may be increased.
d)
Lifestyle
Are you a keen skydiver or involved with motorbike racing or mountain climbing? High risk hobbies can make a difference to the cost of life cover.
e)
Provider
Like any product or service it depends whom you choose to place your business with. It pays to shop around, do some research and to take some professional advice.
Does Life Insurance Always Pay Out?
Actually the majority of life insurance claims are successful and pay out, Aviva and Legal & General for example pay our 99.3% and 96.7% of life claims respectively. Inevitably, there will always be a small number of cases where claims are turned down. This can be for a variety of reasons:
* Aviva claims statistics 2023, , Legal & General claims statistics 2022
a)
Non-Disclosure
Where details of an illness or condition were withheld at the time of taking out the policy. This is most often a pre-existing medical illness that policy holders didn’t disclose because of the effect it would have on the premium.
b)
Missed premiums
If you miss a payment, sometimes by accident (example changing banks or forgetting to transfer funds from one account to another) or because you are going through difficult financial times. Either way, it is important to talk to your provider right away since missing a payment might result in the policy being cancelled. Most providers will offer a way to assist you.
c)
Unsatisfied Waiting Period
This is normally in relation to ‘Over 50’s Policy’s.’ There is often a 12 to 24 month period where claims can’t be made due to death through natural causes; although all the premiums paid will be refunded.
d)
Uncovered cause of death
If the causes and reasons surrounding your death are not known or understood and are awaiting further investigation. If someone is missing, its usual that they can’t be declared dead until seven years have passed.
e)
Exclusions
These will vary from policy to provider. Certain medical conditions, travel to certain countries (war zones for example) and certain sports. Its important that you disclose everything about your lifestyle, hobbies and medical conditions so that a policy and provider can be found that meets your requirements.
Why Should my Life Insurance be in a Trust?
When taking out life insurance, your family / loved ones are more likely to benefit from it if it’s ‘written in trust.’
Whilst you want to cover all your debts, such as your mortgage, you also want to leave your family as much money, to insure their financial well – being, as you possibly can. With this in mind – and particularly if your single or divorced, it’s worth appreciating that the inheritance tax threshold for your combined estate (property, savings, possessions, investments and……..life insurance) is £325,000. Anything above this amount is liable for 40% inheritance tax. This means that if your life insurance pay-out ‘tips you over the threshold’ and your life insurance isn’t within a / the trust, the taxman stands to take a sizeable share.
Where Should I Get my Life Insurance From?
Given the importance of such a requirement and often faced with a raft of small print and possible exclusion clauses, we would always suggest that you seek some advice from a specialist adviser to ensure you get the life cover that’s ideally suited to your requirements. As it happens we have a team of qualified professionals all here to help you get the right cover for your family, so call today 01785 336222.
