Life Insurance & Critical Illness.
|
|
About The Video.
Simplifying Serious Illness Cover:
DISCLAIMER: I have a business connection with Vitality through the financial education company Genistar Ltd. Email me for details. This advert for Vitality serious illness cover explains the need to protect yourself in the event of life-changing illness.
|
Wellness.
- Respect everyone: Insuring yourself for death and critical illness is invariably about others - your beneficiaries. You need to understand and accept the nature of their loss. In the first instance there is the loss of a loved-one. Then comes the financial reality of losing an income.
- Be ethical in all your dealings: Believe it or not I have come across breadwinners who just didn't care. One person asked me, "...when I'm gone why should I care?" BECAUSE you have created a circumstance where people are relying on you to do the right thing.
- Be sceptical: Life cover is almost always sold to people. This is not a bad thing because people with dependents have a real need. But not all insurance policies are created equally and not everyone's needs are the same.
- Don't automatically accept or reject anything: It's a good idea to keep an open mind in all of your dealings. It is especially important when it comes to protecting your finances. Listen to everything and then make your decision on what you want to do.
- Be happy: There is a real comfort to be had from knowing that you have secured the financial futures of those you love. Take this feeling and add it to all of the other good things you have done in your life.
What follows is specific to the United Kingdom.
Life Insurance is a way to provide a lump sum of money for your dependants on the event of your death. The way I looked at this is that the insurance company cannot replace you but it can replace your income.
Put bluntly the permanent loss of an income on a family can be devastating and life assurance should be a major consideration for all parents. We insure our cars, homes, pets etc. Proper attention should be given to your need for life insurance.
Is there a need? £3.4 Billion was paid out in ‘protection’ claims in the UK 2015.
Modern life insurance products can be complicated with too many options to go through here. There are however 3 questions that don’t change. You will need to decide –
Also there are two main life insurance products ‘Whole of Life’ and ‘Term’ -
Whole of life pays out whenever you die. Term insurance pays out within a fixed time decided when the policy comes into force.
There are several things to be considered when choosing between the two. Insist that your advisor gives a full explanation for both. Often the temptation is to choose term insurance because it is cheaper and can sometimes be ‘converted’ to whole of life at a later date. BUT one big reason it is cheaper is that there is no cash in the policy when it finishes. If you make it to the end of a term policy you get no money back the policy simply ends. Just make sure you have all the information you need to make an informed decision.
NOTES:
Critical Illness.
Critical illness cover provides a lump sum in the event of certain illnesses/disability.
Pure life insurance only covers death. Long term illness or disability will not be covered. Often this cover comes as a separate contract but can exist as part of your main life assurance.
Critical illness cover can be expensive and there is no return unless a claim is made. As in all insurance products only you can decide the risk involved and the importance of protection to you and your family.
Life Insurance is a way to provide a lump sum of money for your dependants on the event of your death. The way I looked at this is that the insurance company cannot replace you but it can replace your income.
Put bluntly the permanent loss of an income on a family can be devastating and life assurance should be a major consideration for all parents. We insure our cars, homes, pets etc. Proper attention should be given to your need for life insurance.
Is there a need? £3.4 Billion was paid out in ‘protection’ claims in the UK 2015.
Modern life insurance products can be complicated with too many options to go through here. There are however 3 questions that don’t change. You will need to decide –
- How much you want to be paid out on death (sum assured).
- How long you want the cover to run (term)
- Who you want receive the money (beneficiary).
Also there are two main life insurance products ‘Whole of Life’ and ‘Term’ -
Whole of life pays out whenever you die. Term insurance pays out within a fixed time decided when the policy comes into force.
There are several things to be considered when choosing between the two. Insist that your advisor gives a full explanation for both. Often the temptation is to choose term insurance because it is cheaper and can sometimes be ‘converted’ to whole of life at a later date. BUT one big reason it is cheaper is that there is no cash in the policy when it finishes. If you make it to the end of a term policy you get no money back the policy simply ends. Just make sure you have all the information you need to make an informed decision.
NOTES:
- You may be wealthy enough to survive the loss of an income. You may already have some life insurance built into other products and/or work benefits. Life insurance forms just one part of your ‘bigger financial picture’. It is important that you review your whole situation on a regular basis.
- It is vital that a full and truthful ‘health & lifestyle’ declaration is made at the time of taking out any insurance policy. It is better to accept a slightly higher premium than risk the policy not paying out when it is needed.
Critical Illness.
Critical illness cover provides a lump sum in the event of certain illnesses/disability.
Pure life insurance only covers death. Long term illness or disability will not be covered. Often this cover comes as a separate contract but can exist as part of your main life assurance.
Critical illness cover can be expensive and there is no return unless a claim is made. As in all insurance products only you can decide the risk involved and the importance of protection to you and your family.
What's Next?I accept completely that this page is little more than a 'sketch' of a very complicated topic. Because of this I am happy to help anyone who needs more information. For specific questions, email me now.
BE ASSURED ALL OF OUR DEALINGS ARE UNDERTAKEN IN THE STRICTEST CONFIDENCE.
|
How Can We Help?As a member of 469BCe.com, you will have, one-to-one help in all life insurance and critical illness issues (personal and business).
No-matter what the circumstances I or one of my group of advisors will be able to offer concrete advice and 'hands-on' help. IMPORTANT NOTES: 1. No specific advice can be given or implied. 2. James and 469BCe.COM are not authorised or approved for the direct selling of any financial products and/or services. 3. All of my services are free. I can, by your request, introduce you to professionals in the financial services industry and may at that point be paid an 'introducer fee'. However general information regarding the basics of business and personal financial planning is just an email away. It's important to stress the difference between the principles and knowledge involved in good financial planning that we offer our members, and the sales of financial products. 469BCe.Com has no direct involvement in the sale of financial products. |