When people think of their financial wellbeing, life insurance isn’t often at the top of the list; many people don’t always understand why they need it, and it’s rare for someone to wake up in the morning and think about taking out life insurance without some sort of provocation.
But, the simple fact is that if you have anyone relying on you financially then you need life insurance. If the worst were to happen, your income stops but your family will still have to pay the mortgage, bills and lead a normal lifestyle. We’ve rounded up some of the most commonly asked questions around life insurance, along with a list of do’s and don’ts…
Why do I need life insurance?
Life insurance is an excellent way for you to protect the things that mean most to you; you can make sure your family’s financial future is more secure if something unexpected happens to you and you’ll have the peace of mind that they’re being looked after.
How long should I take out life insurance for?
This one’s entirely up to you. Vitality life insurance comes with a minimum cover of five years, and maximum cover of your whole life. Before you decide, it’s best to speak to an adviser who can determine what you need and then design a plan around what works specifically for you.
How do you work out the price of my life insurance?
Life insurance premiums are based on a lot of things including:
- Your health
- Whether your employed in a high-risk occupation
- Your smoker status
What are the minimum monthly premium and minimum cover amounts?
With VitalityLife, the minimum monthly premium for life insurance is £8 and the minimum cover amount is £10,000. However, the level of cover you’ll get for £8 will depend on your age, height and weight, whether you’re a smoker, your general health and your medical history. If you choose to engage with our rewards and discount programmes, then the premium will be higher.
What’s the difference between term life insurance and whole of life insurance?
Term life insurance provides protection for a specific period of time; with Vitality the minimum term is 5 years and the maximum is 70 years. With whole of life insurance, you’ll be protected for your entire life.
Can the level of cover change over the life of the plan?
There are three different types of cover – here’s how each of them can change.
Level life cover – this type of cover amount stays the same over the life of your plan and it will only change is something happens – e.g. you make a claim or change the cover
Indexed life cover – this type of cover amount is designed to protect against the rises in the cost of living, so your cover amount will rise each year at your plan anniversary, in line with the Retail Prices Index (RPI). However, this does also mean that your premium will increase by a little more than the RPI each year to reflect your increasing age.
Decreasing life cover – this type of cover goes down over the life of your plan as it’s designed specifically to cover the reducing amount you owe on a mortgage. This means that the amount you’re covered for goes down each year, but the premium stays the same.
How do I get rewards with my life insurance plan?
To get access to exclusive discounts and rewards with Vitality, you’ll need to add Wellness Optimiser or Vitality Optimiser to your policy for an additional small monthly fee.
Can I change my policy later?
Yes, you can – if your circumstances change you can increase your cover or buy extra policies. You can also choose to add indexation to your plan at no extra cost, or you can also choose to opt out of any future increases.
Can I tailor my policy?
You can add or remove a whole series of additional covers and options at any time.
How can I apply for life insurance?
You can get a quick quote online, but you won’t be able to get a full quote online – you’re best giving one of our friendly advisers a call on 01252 938238 to talk it through in further detail.
How long does it take to apply?
If you don’t need a medical, then we can usually complete your application on the same day – if you do need a medical then it could take a little longer.
Do I need to have a medical if I buy life insurance?
Not necessarily, but when filling out an application you must be honest about any medical conditions or treatments. If you don’t suffer from any conditions, you may not need a medical.
I’m a smoker – will this affect my life insurance?
Yes – due to the link between smoking and a large number of health problems, a smoker is likely to pay more for life insurance than a non-smoker. If you smoke, it’s important to be honest as Vitality may carry out random checks.
So there you have some of the most commonly asked questions when it comes to life insurance – if there’s anything else you’d like to know, drop us a message at firstname.lastname@example.org or give us a call on 01252 938238!