We have uncovered a number of common misconceptions about life insurance and would like to set the record straight and hopefully help you make the right decisions with regards to your life insurance policy.
1. People in poor health can’t get insurance.
Life insurance policies aren’t just for people who are healthy. Each case is treated individually at Endsleigh Financial and we will do our best with all cases to find the most suitable cover, regardless of your health.
2. I won’t be able to get insurance because I’m a smoker.
Smokers are able to get life cover just as easily as non-smokers the only difference is that the premium paid by a smoker will be slightly higher then that of a non-smoker. Even though you pay more as a smoker, the policy will still be affordable.
3. People who smoke won’t be covered if they die from a smoking related illness.
This is not true, as long as a smoker had declared themselves as a smoker their claim will be treated no differently to that of a non-smoker, even if their death was lung cancer for example. So long as the smoker declared themselves a smoker when the policy was started then there should be no cause for concern.
4. Once a smoker, always a smoker in the eyes of the life insurers.
Most life insurance companies consider you a non-smoker after 12 months of having quit smoking completely. So after one year you can get non-smoker rates also. On some policies you can even get non-smoker rates even if you started the policy as a smoker but have been smoke-free for 1 full year.
5. I don’t work so I don’t need life insurance.
Even those that aren’t in work may still require life insurance. There are a number of reasons why; the most obvious one being your family. Although a stay-at-home parent may not bring home an income, their contribution to the household could be quite costly to replace. It could mean the remaining parent has to give up some of their own work commitments to help with the financial burden of household duties. Such costs should be taken into consideration when calculating your need for life insurance.
6. The best deals are obtained over the Internet, bypassing agents' commissions.
The internet may be a good place to start researching which type of policy would be best for you and to give you some idea of cost but ideally you should get advice from someone who specialises in such matters. This can ensure you aren’t spending anymore than necessary and to also guarantee that the policy you choose is right for your particular circumstances. Endsleigh Financial offer independent financial advisors who can research the market for you and ensure you’re getting the best deal.
7. It’s likely I won’t even need life insurance so why should I spend the money?
It’s unlikely you will die during your working life however it is a possibility and to not have such a policy in place to protect your family could mean your death has a far worse effect on your family than their loss alone. People buy life insurance for the worst case scenario just to ensure their families won’t face financial hardship as a result of their death. Using a financial advisor can guarantee you get the right amount of cover to look after your family once you’ve gone.
8. There will be a 40% inheritance tax on my life insurance policy.
That’s correct and the taxman could turn a £300,000 life insurance policy into one worth £180,000. There is however something you can do about it. By simply writing your life insurance into trust your policy won’t be counted as part of your estate which simply means it won’t be subject to inheritance tax. This is one of the services Endsleigh Financial offer to ensure you get the most for your money.
Endsleigh Financial have a team of qualified financial advisers who are ready to answer any questions you may have surrounding protection for your family.
If you just need some clarification or you don’t know where to start: getting in touch with one of our advisers can establish what works best for your situation. Our independence means we can search the market on your behalf to find you our best deal.
Click here for more information on life insurance or call one of our advisors on 0800 389 2193.
Endsleigh Financial Independent Tailoring is a trading name of Endsleigh Independent Financial Services Limited which is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its website at www.fsa.gov.uk.
Endsleigh Independent Financial Services Limited. Company No: 4132605 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.