Coverage In The UK Just now
Choosing the right cover you for may be difficult, your life is very precious and you want to protect it any way you can. If you are looking at life insurance or critical illness insurance, for every person they will need to decide upon how much cover you want and how long you wished to be covered for. It may begin with how much money you earn, as it would depend on how much money you have spare at the end of every month. The plan you take out will depend on your budget, you do not want to over commit and be paying out for insurance you cannot afford. Although you can cancel the cover at any point in time, you do not want to be having to start and stop your cover and maybe end up having to re fill an application form and go through the underwriting process over and over again. You can use a cover calculator but in reality it is only you who can decide how much money you have spare at the end of the month, not forgetting that within today’s economy the price of living is just going up and up and you do not want to be left with nothing. Taking out the insurance will give you piece of mind that you are looking after your family, if the worst were to happen say at a young age. By paying the premiums on a monthly basis means that a lump sum will be paid out to your loved upon your death. Giving them the money to use it wisely and pay off for example a mortgage on the family home and if there was a bit of money spare use it for any costs incurred for the funeral. If considering the price of the plan, the premium paid monthly is different depending on whether you are male or female, whether you are a smoker or non smoker and depending on how old you are when taking out the plan and they will also take into account your medical history and even your family history.
To be able to take out life insurance you need to be a permanent resident within the UK, between the age of seventeen and sixty nine. Some insurers may go beyond the age of sixty five but it may a different plan to the standard life and critical illness insurance, for example it may be a whole of life application. It is considered that a whole of life application or sometimes known as Lifetime+ is more appropriate to cover funeral expenses etc. This is because it is typically a lower sum assured normally under ?5000, where as a life insurance plan would typically cover you for example ?50,000 and more. A critical illness contract can cover you also for a large amount, and some policies could even go up to a million pounds. When you reach figures of that level the underwriting requirements change and more information may be required about yourself, such as a Financial Questionnaire. It is becoming more and more common for companies to advertise policies where you are guaranteed to be accepted and some even say for a specific amount of money per month; however it is worthwhile making sure it is the right policy for you because sometime if it is within your budget that little bit extra money may go along way.
Normally once a plan is submitted to a specific provider, the plan will need to be underwritten by a qualified insurance underwriter. Once the plan has been assessed, terms will either be offered on the plan or they may require further information. After all information has been received and again terms have been offered it is up to the individual client as to when they want the policy to start. Some clients wish the policy to start on the day their mortgage cover starts others may wish for it to start immediately. It is then important that the monthly payment is paid out of their bank account on a preferred day of the month, some request the first of the month others request mid month typically depending on when they get paid.
I found this site very useful Life Insurance and also Critical Illness Insurance
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