Life
insurance
Frequently Asked Questions?
Here you should be able to find the answers to any questions we’ve not answered already to help you make sense of it all.
- What is 'Life Insurance'?
- Who can apply for cover?
- How much cover should I get?
- How long should I get cover for?
- Can I start my cover now?
- Can I cover my mortgage?
- Can I buy joint cover?
- Can I include Critical Illness cover?
- How can I pay?
- How do I make a claim?
- Can I choose who gets the money if I die?
- Are pay-outs taxed?
- Can I cancel the policy at any time?
- Will my payments change?
- Do I get any money back if I don't die before the end of the term?
It's a simple and cost effective way of helping to protect your family and loved ones financially by providing money in the form of a cash lump sum in the event of your death during the term of the policy or in the event of a terminal illness (terminal illness benefit does not apply in the last 18 months of the policy, and life expectancy must be less than 12 months). This can then be used to help support your family and loved ones without your salary to pay the mortgage, debts, bills etc. giving you peace of mind they could be financially secure should the worst happen.
If you're a UK resident aged between 18 and 66, you can. By UK resident we mean someone who is permanently resident in the United Kingdom of Great Britain and Northern Ireland (excluding the Channel Islands and Isle of Man).
3. How much cover should I get?
It depends on your personal circumstances. Some things to take into account are: how much your family would need to support themselves without your salary, the size of your mortgage and how long it's got to run and any other outstanding debts you have. Or another way to approach it is to think how much you want to pay each month. Put that in our Quick Quote and see how much cover you'd get for your money. If you want help deciding how much cover you need this can help you calculate it. This is not advice or a recommendation but might just help you decide.
4. How long should I get cover for?
Most people usually take out their insurance until some key date in the future. It could be when they intend to retire, when their mortgage is paid off, or when they feel their kids may leave home and support themselves. Work back from that date to now, and that will help you decide the number of years you need to be insured for.
Yes. As long as your application is approved we can start your cover straightaway.
If you've got a repayment mortgage, we can set up Decreasing Term Insurance so it reduces during the term, similar to the way your mortgage goes down, which will make your payments cheaper. If you've got an interest only mortgage, your mortgage amount stays the same until you repay it all at the end. Level Life Insurance is designed to cover this type of mortgage.
Yes we can cover both you and another person on our insurance.
8. Can I include Critical Illness cover?
Yes. Although currently this option is not available to buy on-line. Norwich Union offer types of Critical Illness cover. You must be aged between 16 and 59 at the start. The maximum amount Critical Illness Cover you can have is £500,000. This includes any other Critical Illness cover you already have with us or any other provider. Please call 0800 068 5549 if you wish to include Critical Illness in your quote.
By monthly direct debit.
If you've been diagnosed with a terminal illness, get in touch with us and we'll help you fill in a claim form and contact your doctor for all the information we need. If you die your family or representatives should call or write to us as soon as possible, and we'll let them know what we need to sort out the claim. Terminal Illness benefit can only be claimed if life expectancy is less than 12 months and the policy has at least 18 months to run.
Other Questions
11. Can I choose who gets the money if I die?
By putting your policy under trust, when you die any life cover pay-out could go straight to those you want, quicker and with less fuss. It could also help protect the pay-out from inheritance tax (under current tax rules).
Both terminal illness and life claims are usually paid free of personal liability to income and capital gains tax but in some circumstances inheritance tax may be payable. You can normally help avoid this by putting your plan under a suitable trust. The law relating to tax may be subject to change in the future.
13. Can I cancel the policy at any time?
Yes, you just have to tell us. But once you cancel your direct debit payments your cover will stop. You will not be insured and no money will be returned to you.
No, your monthly payments for life insurance will stay the same.
15. Do I get any money back if I don't die before the end of the term?
The policy provides life insurance only and there's no cash-in value. At the end of your policy term, you stop making payments and your cover ends.
