Life Insurance - Frequently Asked Questions (FAQs)
Won't the state look after my family if I die?
There are certain state death benefits, but they are not generous.
My employer provides death in service cover and survivor's pensions; do I need life insurance?
Large employers often provide death in service cover and sometimes survivor's pension benefits, but there are risks involved in relying upon these benefits to look after you family.
What can life insurance do for me?
Properly set-up, life insurance can be used to look after your loved ones if you die.
What's the best way to set-up life insurance?
There is no one 'ideal solution' as to how a policy should be set-up. Your own needs would drive the decision as to which would be the best type of life cover, or combination of cover; for you.
My partner and I are not married, can we still take out life insurance for each other's benefit?
In order to take out life insurance, an 'insurable interest' has to exist at the time the cover starts.
What does 'non-disclosure' mean?
If a person applying for insurance fails to disclose relevant information, their policy may be invalid.
If an insurance company wants me to have a medical, will I have to pay the cost?
There will be no cost to you for any medical evidence that may be required.
I am a smoker, does this have any effect on the cost of my life insurance?
Your smoking status has a major impact on the cost of your cover, whether you are applying for life insurance, critical illness or income protection.
Is acceptance of my application guaranteed?
If there are no adverse factors, your application will be accepted as normal. If non-standard terms are offered you do not have to accept them. In the worst case, your application may be declined.
What do terms such as premiums, sum assured, and other jargon-like words mean?
Please take a look at our insurance 'jargon-buster' to find out what these and other terms mean.
What happens if my life insurance company goes bankrupt?
If your insurer goes bankrupt, the Financial Services Compensation Scheme provides protection.
