FAQs

Understand our most common queries.

What is Life Assurance?

This is cover that pays out on death. Some plans pay upon earlier confirmation of a terminal illness where the prognosis is death within 12 months. It can pay out as a lump sum, or as income for the remainder of the policy term.

Cover can last for a set term called Term Assurance, or can last throughout life, Whole of Life. This payout is guaranteed.

The amount of cover can remain the same or increase / decrease annually. Level term assurance stays the same throughout. Decreasing cover is sometimes used to cover a reducing debt, such as a repayment mortgage.

What is Family Income Benefit?

This cover is similar to Life Assurance in that it will pay out if death occurs, however and provides an income per year for the term remaining on the policy rather than a lump sum. For example, for a 20 year term, where the claim occurred after five years, there would be 15 annual payments made in total. Payments can be made either annually or monthly.

The amount you pay per month is called the premium. It can either be guaranteed not to change, or it can be reviewable.

What is Critical Illness Cover?

This is insurance that pays out when a defined medical event occurs. For example, following a heart attack, stroke, cancer or some other specifically defined critical illness.

Cover is for a set term, which may be equal to a mortgage term, for when children have grown up, until retirement or another life stage milestone. It may be worth considering having one policy for a set term to cover the mortgage, and another that will provide money to help provide for your different lifestyle if a serious illness happens.

Most people choose a lump sum to be paid out. There is the option of receiving it as set income over the term remaining, which is often a lower cost option.

What is Income Protection?

This provides income where you are ill or injured, and as a result your income through employment or your normal route stops.

It is designed to replace most of your net income. Cover lasts for either a set term in whole years, or to a given age (typically your retirement age).

What is Private Medical Insurance?

This is insurance that pays the hospital or Doctor for your treatment. It can include treatment in a private ward, or being seen earlier in an NHS ward. Some plans also allow you to claim if you are not able to be seen by the NHS within a set period. Other plans may charge a little more and don’t have any link to NHS waiting times.

You are either medically checked and underwritten at outset (so you know what you’re covered for and what you won’t be), or have no medical checking at outset (but conditions that occurred two years before taking out the cover are not covered, and often there is no cover for a reoccurrence within five years after taking out the plan). Premiums are usually reviewable annually.

Do your insurance payouts attract tax?

Life assurance / Critical Illness / Income Protection payouts do not attract income tax, or capital gains tax. There may be an inheritance tax liability to pay, and we can provide guidance on this.