Life Insurance FAQ

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What is life insurance?
Cover that provides money, usually a lump-sum, on the death of the insured person, usually for the benefit of their family or financial dependents i.e. children.

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What types of life insurance are there?
Broadly, there are two – Term and Whole-of-life. Term insurance does just that, covering for a finite term. Whole-of-life insurance covers until the insured person dies, whenever that may be. Term cover is cheaper, and can provide a level or decreasing amount of cover.

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What optional extras are available?

• Critical Illness cover – most providers allow these 2 covers to be combined within the same policy.
• Waiver of premium – protect the policy by paying the premiums if the insured is long-term sick, usually longer than 6 months.
• Terminal Illness cover – if the insured person has 12-18 months or less to live, this allows the policy to pay out before death.
• Increasing cover – to combat the effects of rises in the cost of living (Inflation). The premium will increase along with the cover, usually on each policy anniversary.

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How much life insurance do I need?
It depends on your personal financial circumstances. LSE.co.uk's Life Insurance calculator may help, as will talking to a Whole-of-market Financial Adviser.

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How much does life insurance cost?
It depends on a number of factors, such as Gender, Age, whether or not you smoke, height & weight, occupation, personal medical history/conditions, and even family medical history.

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How do I apply for life insurance?
You can take advice from an Adviser or buy online. LSE.co.uk has linked to a Whole-of-market Adviser for the benefit of its members and visitors - click here to get a quote!.