Can You Pay Life Insurance Cash-back - Critical Illness Cash-back?
Insurance companies price their products based on paying commission
for advice even if you go direct and don't get any.
We therefore reward you for placing the application with us in
the form of a rebate of some of that commission as long as you agree
to our terms and conditions should the policy stop within the commission
Commission on life and critical illness insurance
is paid 'up-front' and describes the situation where a provider
would pays us an amount of money based on a percentage of the first
year's premiums for a regular premium contract. This sum is paid
immediately on commencement, on the assumption that the policy will
stay in force for a number of months/years ('the earnings period').
Should you stop paying premiums within the 'earnings period' (generally
between 24 and 48 months), then the provider would ask us to repay
the 'unearned' commission. You will therefore have to repay your
share of this unearned commission. If you do not accept those terms
than we can still pay you cashback however this will be paid at
the end of each year during the earnings period.
Compare Critical Illness
What Are The Different Types of Life Cover Are There?
Term Assurance provides your chosen amount of cover restricted
to a specific period of time usually chosen to coincide with
an event such as the finish date of a mortgage or to provide
protection for your family. This type of insurance provides
protection only therefore at the end of the plan term the
policy stops and the cover will cease. If you were to fall
ill after this point, the policy will have lapsed at a time
when you could be uninsurable (unless you have chosen renewable
or convertible term assurance).
The main types of term assurance are:-
Level Term Assurance - the sum assured remains the same throughout
the plan term (unless you have selected to have the cover
Decreasing Term Assurance - the sum assured reduces each
year to coincide with a repayment mortgage.
Family Income Benefit - In the event of a claim sum assured
in paid as a monthly income until the end of the plan term.
(can be very tax efficient from an inheritance tax point of
Can You Choose With Term Assurance?
You can select to have Renewable Term Assurance, which will allow
you to renew the plan for the same amount of cover and duration,
which will not take into account your medical history on renewal
only your age. (Our quotes system cannot do this quote so if you
need a quote please e-mail us on firstname.lastname@example.org or phone
us on 01872 277291).
You could include Wavier of Premium. This is valuable benefit that
should you be unable to work for a period of time the insurance
company would pay you life assurance premiums to ensure that the
cover does not lapse at a time when you may really need it.
Critical illness insurance
can also be included this could be combined with life cover (when
you make a claim on either life or critical illness part of the
the policy the provider pays out then cover stops) or you could
select separate life and critical illness cover. This would enable you to maintain the
other part of the plan until that also paid out or the cover came
to an end.
The policy should be written in trust so that the proceeds
of the plan are not paid into your estate in the event of
death and will not therefore, suffer the delays involved in
obtaining probate and also escape inheritance tax. The trust
would also deal with critical illness claims to ensure that
the proceeds would in that event go to the policy holder.
We can supply trust forms and provide guidance on how to complete
the trust forms on request.
Compare Critical Illness
Whole of Life
Whole of Life Assurance, as the name suggests, can provide
life cover or critical illness cover without imposing a limited
Their are two main types of Whole of life:-
Unit Linked Whole of Life
On a Unit linked Whole of life your premiums are split into
two parts one to provide your chosen amount of cover now and
the other part is diverted into a unit-linked investment fund.
The purpose of the fund is to accumulate money while the cost
of cover is low to help subsidise the cost of cover as you get
older. A unit-linked plan allows the premiums to be kept lower
as they are based on the expectation of some future fund growth.
Unit values can of course fall as well as rise.
Because part of your premium is invested within a fund you
can select how much goes into accumulating funds to help support
the cost as you get older.Unit linked plans offer a degree of
flexibility on how much you contribute.
There is a choice between:-
Maximum cover - Most of the premium is paying for the selected
amount of cover and a very tiny amount will be used to build
up a fund. As a result the cost of cover will be very cheap,
however on the first review will almost certainly increase substantially.
Minimum cover - You have selected a low level of cover and
a high percentage of your premium will be paid into the investment.
Cost will be the highest and cover the lowest.
Standard cover - basically allows the same level of life cover
to be kept up throughout life, as long as the fund achieves
a specified minimum annual growth rate. If this rate is not
achieved you will either need to increase the premium to maintain
cover or to decrease the level of cover to a sustainable level.
Whatever level of initial cover is chosen, that amount is guaranteed
to be maintained for a specified term (normally 10 years). The
policy should be written in trust so that the proceeds of the
plan are not paid into your estate and will not therefore, suffer
the delays involved in obtaining probate. They will also escape
inheritance tax. We can supply trust forms and provide guidance
on how to complete the trust forms on request.
Guaranteed Whole of life
Premiums are set at the outset and are guaranteed not to rise
throughout the plan term. Their is no investment element therefore
the plan will not acquire a surrender value.
The above paragraphs are for information only. You should seek
professional advice on the most suitable type of cover for your
particular circumstances, which we would be happy to provide.