What is life insurance?
Life insurance is designed to help your family cope financially when someone passes away. It could be used to replace lost income, cover an inheritance tax bill or to fund care for children or a relative. Some policies also offer protection should you become critically ill – you can find out more about critical illness cover here.
In return for paying premiums, the insurance company will pay out the agreed lump sum – known as the 'sum assured' – if the ‘life assured’ (the person covered by the plan) dies during the term of the policy. Plans can cover a single person or two people, such as a married couple.
Premiums are normally paid to the life insurance company on either a monthly or yearly basis for a fixed period of time or in some cases, until death eventually occurs. The cost of these plans varies according to your personal circumstances such as the number of people covered, their age, previous medical history and the amount and length of cover required.
Why should I get life insurance?
When you are planning for the future, life insurance can provide the reassurance of financial protection for you and your family. The money provided can be used to pay off a mortgage or any outstanding debts,or support your dependants financially by providing them with a lump sum or a regular income if you die.
It can also be placed in a trust for the beneficiaries of your estate to pay any Inheritance Tax that may be due on your death.
If you own a business, life insurance can provide a lump sum to help it through the tough times if you, or one of your key employees, were to die. Or, if you are partner or shareholder in a business, it can provide the money needed to buy the share of the deceased partner or shareholder.
Why choose Old Mutual Wealth?
With flexible cover, comprehensive benefits, and our There for You support service our Protect life cover can give you peace of mind and financial protection.
Last year we paid 99.78% of our life cover claims and over 96% of our critical illness claims – one of the best records in the industry – so you can rest safe in the knowledge that you and your family will be financially secure, whatever the future my hold.
Protect is a flexible life cover plan. It can include one or more policies, each with a different term and benefits, so you can tailor the policies to create the perfect fit. Three terms are available; fixed, rolling and whole of life. All three offer:
- optional premium protection benefit, which pays the premiums if you are unable to work due to illness or injury.
- options to increase the cover after certain events in your life such as marriage, moving house or having a child.
- the option to increase your cover each year to keep pace with inflation.
With our There for You service, we can offer you and your family the emotional and practical support of a personal nurse adviser at any time for as long as you need it.
We offer fixed terms of 5 to 50 years with premiums guaranteed for the duration of the term. When you reach the end of the term the cover will end.
Rolling term is unique and offers the best of two different products:
- you can renew the cover every ten years and
- you can keep renewing it for as long as you need it, without any further medical questions.
Compared to other plans that cover you for the whole of your life the premiums start low and increase every ten years. Unlike some other products we will tell you at the start of the cover what those increases will be and we guarantee not to change them, unless you change your cover.
Guaranteed whole life
A guaranteed whole of life policy does just what the name suggests. Cover will last for the whole of your life and the premiums are guaranteed not to change, unless you change your cover.
Premiums will be higher than a plan like rolling term at the start, but you have the additional certainty of paying the same amount in the future as you are at the start.
Want to read more about the cover? Download our 'Explaining Protect' guide or our key features document: