Applying for Life Insurance
Why is my medical history required?
The reason why a medical history is required because those ways we can assist you better with precise quotes. It’s essential to know that policies regarding life insurance are standard, rated and guaranteed. All of it depends on the answers that you give us related to your age, weight, your lifestyle and health at the time of application.To be completely honest and clear is crucial when you decide on applying for life insurance. If you decide on not disclosing full details about your medical history, that can blow your cover and the results might not be promising.
In various cases, your broker will select your answers at face value and as a result your doctors report won’t be needed. In fewer cases, you may be required to go through a medical exam; it is all on the way you give answers to certain queries in the life insurance application form.
Why am I being required to have a blood test or medical exam?
When applying for a life insurance policy, the information you provide, such as your age, weight, lifestyle, and health, is used to underwrite your policy. It is essential to be truthful and transparent in your application, as incorrect information, whether intentional or not, could lead to a denied claim without a refund of premiums. Lying on your application could also be considered insurance fraud and result in legal consequences.Depending on how you answer certain questions, you may be required to undergo a medical exam, which involves visiting your GP for a health check and sharing the results with the insurer. This is done to ensure that your health is accurately recorded, and the insurer can make informed decisions and price the insurance accordingly. While it may be inconvenient, taking the medical exam can give both you and the insurer peace of mind.
If you are asked to undergo a medical exam, it is essential to do so promptly to avoid delays or having to get re quoted. Protection Heroes has a dedicated team that can help you navigate the process and keep things moving smoothly by liaising between you, the insurer, and your medical professional (if permitted).
Sometimes, Providers can also send a nurse for the screening at your convenience.
Before choosing to take out on a policy, why cant I see the paperwork?
Many customers request to see the insurance paperwork before agreeing to life insurance coverage. However, the policy documentation is generated only after the policy has been sold, so it is not possible to provide the paperwork for a policy that does not yet exist. Instead of the actual policy paperwork, we can provide a Key Facts Document (KFD) that includes essential information about the insurer and how the policy works.At Protection Heroes, our specialists are available to provide you with all the necessary information and advise over the phone, so you can make an informed decision. We understand that it is important to take the time needed to fully understand the terms of your coverage and are happy to repeat any information to ensure complete clarity. All calls are recorded to protect both you and Protection Heroes in the event of a dispute.
Additionally, all life insurance policies are backed by a 30
day money back guarantee, which provides ample time for you to receive and review all the necessary paperwork. We encourage customers to take advantage of this guarantee to ensure complete satisfaction with their coverage.For setting policies through a broker, do I have to pay more?
Protection Heroes operates as a fee free broker, meaning that there are no upfront or separate charges for consultations, quotes, or discussions with one of our specialists. The cost of setting up your policy will be included in the premiums you pay, and you will not receive a separate bill for any guidance or advice provided by Protection Heroes.Typically, using a broker like Protection Heroes will not increase the cost of your policy. In many cases, our preferential rates with some insurers may even result in lower costs compared to going directly to the insurer.
Please note that our help center articles are intended to provide general information to UK consumers. Protection Heroes operates on advised basis, and our help center articles should not be considered as advice or an indication of the terms and conditions of your policy. We will do a complete fact find to ensure that your selected quote matches your needs. Insurers may update their terms and conditions from time to time, and while we make every effort to keep our information up to date, there is a chance that the information on our pages may become outdated. For a full understanding of the terms and conditions of your policy, we recommend reading all of your documents and contacting us for clarification if there are something you do not understand.
Do I have the option to choose who gets my life insurance payout?
If you decide to place your life insurance policy in Trust, you will be legally specifying who will receive your life insurance payout. This Trust will separate your life insurance policy from the rest of your estate, making it possible for your loved ones to receive it faster and potentially exempting it from inheritance tax.If you choose not to put your life insurance policy in Trust, it will become part of your estate. Writing a Will can be a legal way to direct how you want your life insurance proceeds to be distributed and spent.
If you don’t put your life insurance in Trust or write a Will, your life insurance may be subject to intestacy rules and could be given to someone you wouldn’t have chosen.
Do I have the authority to set up life insurance policies for someone else?
The question of whether someone can take out life insurance in the name of his or her parent, close family member, or friend often arises. However, it is not possible to do so as Protection Heroes requires that the applicant for life insurance speaks to them on the phone, both to comply with data protection regulations and to prevent insurance fraud. Protection Heroes needs to confirm that the person buying the life insurance policy is the named applicant. There are exceptions, such as when an applicant has a medical issue or disability that prevents them from communicating directly with us, or when a representative has Power of Attorney or other legal powers to act on someone else’s behalf. Nevertheless, Protection Heroes has the responsibility to review appropriate documentation to verify such exceptions before proceeding.Can I still get life insurance if I don’t live in the United Kingdom?
Protection Heroes UK life insurance providers do not offer life insurance to individuals who are not UK residents. However, there are options available for expatriates, although we do not not provide assistance with this.Why is a phone call conversation with me needed?
Life insurance is customized to suit an individual’s needs, and its price is determined by several factors such as age, health, occupation, weight, height, medical history, and lifestyle. Therefore, it is challenging to offer accurate quotes through online or email channels, and a phone call with a specialist is recommended. This way, the specialist can provide real time market research, and the conversation can be recorded to ensure full understanding of the policy terms. Recorded calls also serve as evidence
in rare cases where policy claims are disputed with the Financial Ombudsman Service. It is also must to do a fact find to ensure that your selected cover matches your need and to establish that it is important to talk to an advisor over the phone. We offer phone calls with trained specialists advisors who ask personalized questions not found on online comparison websites. This ensures that policies are tailored to suit the individual’s and family’s needs, reducing the risk of underinsurance, which can cause financial strain. Protection Heroes provides a free information and comparison service and offers multi–step calls, so customers have enough time to process information and ask questions.I am hesitant in giving my bank details over the phone
When it comes to setting up your life insurance policy, it’s important that you feel at ease. Protection Heroes understands this, which is why they do not ask for your long debit or credit card number, as this can be charged without notice. Instead, they only require your bank account number and sort code to set up a direct debit payment request. A direct debit is an instruction to your bank or building society to allow an organization to take money from your account. This payment method is safe and secure, and the Direct Debit Guarantee protects you. If you prefer, you can provide your bank details by post by letting Protection Heroes insurance advisor know. You can cancel a direct debit at any time by contacting your bank or building society, and written confirmation may be necessary. Don’t forget to notify Protection Heroes if you do decide to cancel your direct debitHow do I know if ill be eligible for life insurance?
To be eligible for standard life insurance with Protection Heroes, you need to be a resident of the UK between the ages of 18 80, and able to speak and understand English proficiently. However, the company does not offer translation services at this time.The cost and approval of your life insurance policy are determined based on the information you provide during the application process, including your age, lifestyle, health, weight, and height. The decision on whether to approve you for a policy and the cost of premiums will be based on the perceived risk you pose to the insurance company.
By law, life insurance companies are not required to offer you a policy if they become aware of a health condition or lifestyle choice that they deem to be reasonable, reliable, and relevant to the decision.
A Protection Heroes advisor will inform you during the application call if you have been accepted for a policy or not. If additional information, such as a medical check with your GP or blood test, is required, your policy will be put on hold until the results are received.
If you are not approved for a policy, your Protection Heroes advisor can explore other options with you. You may consider applying to a different insurer or choosing a non medically underwritten policy, which guarantees acceptance for those aged 50 80 but pays out less than a medically underwritten policy.
Why is my application taking so long to be processed?
The time it takes to complete a life insurance application can vary greatly, ranging from 20 minutes to several months. Delays in the application process can be caused by various factors such as external checks conducted by the insurance provider, including medical exams or blood tests. In such cases, Protection Heroes assigns a dedicated account manager who acts as a liaison between the insurer, medical facilities, and the applicant. The account manager keeps the applicant informed of any delays or declined applications, and suggests alternative options when necessary. It is essential to remember that the potential payout to loved ones in the event of an untimely death is worth the time taken to complete the application. If an applicant feels like withdrawing their application due to delays, they should consider the consequences of not having life insurance and starting the application process anew with a different broker. If you are concerned about the length of the application process, it is always best to discuss your options with your Protection Heroes Advisor. They will be able to provide you with information on the status of your application and any expected delays, as well as any alternative options that may be available to you. Remember, Protection Heroes is here to help and support you throughout the application process.
Trusts and Tax
What exactly is a “Trust”?
A Trust is a legal agreement where your assets, including your life insurance policy, are managed and distributed to your beneficiaries by one or more trustees. There are various types of Trusts, but they all aim to accomplish the same goal. It is not mandatory to create a Trust when taking out life insurance, but it has numerous benefits.Placing your life insurance policy in Trust removes it from your Estate, resulting in the avoidance of Probate. This accelerates the process of your beneficiaries receiving the life insurance payout, which can be crucial in urgent situations such as paying for a funeral or mortgage payments. Furthermore, creating a Trust provides greater flexibility in choosing who will receive the payout and how it can be spent. For example, a trustee can manage the funds intended for a child until they reach the age of 18. If you do not create a Trust, the payout will likely go to your next of kin, regardless of your intentions.
Additionally, placing your life insurance policy in Trust exempts it from inheritance tax calculation, ensuring that your loved ones receive the full payout intended for them. However, the rules of inheritance tax are subject to change, and professional advice should be sought regarding taxes.
It is essential to note that Trust planning and inheritance tax planning are not regulated by the Financial Conduct Authority.
Will my family have to go through with the completion of payment of inheritance tax on my life insurance?
When a person dies, they typically leave behind various assets, such as property, bank accounts, investments, vehicles, and personal belongings, collectively known as their Legal Estate. If the value of this estate exceeds a certain threshold set by the UK Government, it may be subject to inheritance tax (IHT). Without a Trust, a life insurance payout would be paid to the deceased person’s bank account or personal representative, which would be included in their estate and could push it over the IHT threshold.However, if a life insurance policy is placed in Trust, its value is usually not considered part of the estate and would not be subject to probate or inheritance tax. This means that the payout could reach beneficiaries faster and potentially save them thousands of pounds.
Is tax payment compulsory for my loved ones on the life insurance payout?
Life insurance payouts are not taxed as income. However, if the payout is part of your Estate, your beneficiaries may be liable to pay inheritance tax if your Estate’s total value exceeds a specific threshold.What is the process to set up a trust?
A Trust agreement is a legal arrangement that allows you to transfer your assets to your chosen trustees and beneficiaries. One of the advantages of putting your life insurance policy into a Trust is the potential tax benefit for estate planning purposes.There are different types of Trust to choose from, depending on your needs and the beneficiaries you want to include. It’s essential to select the right one to ensure your peace of mind.
If you buy a life insurance policy through Protection Heroes, we offer a free Trust service to help you set up a Trust. Within six weeks of purchasing your policy, you’ll be
asked to schedule a call with our Trust team. They will guide you through the process of selecting the right Trust type, picking your trustees and beneficiaries, and filling out the required forms.The Trust process is quick and easy, and once your policy is placed in Trust, you can relax knowing that your chosen trustee(s) will receive the payout and distribute it to your beneficiaries.
Note that Trust planning and inheritance tax planning are not regulated by the Financial Conduct Authority
Your Health
Is my life insurance affected by my family history?
The medical history of your immediate family members can impact your life insurance application. If any of your direct family members were diagnosed with cancer or heart disease before the age of 60, it could suggest a hereditary condition that might increase the perceived risk to insurers. Insurers may ask about other health conditions in your family history as well, so it’s best to be prepared to answer these questions during the application process. Having a negative hereditary trait doesn’t automatically mean that you won’t be eligible for life insurance, but it might affect your premium prices. It’s important to disclose all relevant medical information during the application process, as withholding any information could render any future claim invalid.Does life insurance cover if I’m severely ill?
The purpose of life insurance is to provide a payout upon the policyholder’s death, although some policies may allow for an early payout if the policyholder has a terminal illness with less than a year to live. On the other hand, Critical Illness Cover is a policy that pays out upon diagnosis of a serious illness such as cancer, heart attack, or stroke. The payout from Critical Illness Cover can be used to assist during times when the policyholder may not be able to work. There are no restrictions on how the payout from a Critical Illness Cover policy can be used, similar to a life insurance payout.If I have a stroke, does life insurance pay out?
Life insurance policies typically only provide a payout upon the policyholder’s death. However, some policies may also pay out early if the policyholder is diagnosed with a terminal illness and has less than 12 months to live. In the case of a severe stroke, such as Terminal Status Stroke, a life insurance policy may also pay out under the terminal illness clause, which could require palliative care and lead to death within months. The policy may also pay out if death occurs due to a stroke at any time, provided the policy is still active.For strokes of lesser severity, a life insurance policy will not pay out while the policyholder is still alive, but will cover death caused by stroke as long as the policy is active. If someone is concerned about the financial impact of having a stroke, they may consider purchasing Critical Illness Cover. This insurance provides a payout upon diagnosis of a variety of illnesses, including stroke, and can provide financial assistance in the event of a serious health condition.
Will I be able to get life insurance with mental health conditions?
Although most mental health conditions do not necessarily disqualify you from getting life insurance, it is essential to consider that the decision to underwrite your application depends on the nature and severity of your condition. If your condition has worsened recently or you have attempted suicide in the last 12 months, you may not be eligible for coverage.What if I have a heart attack? Does life insurance pay out?
The British Heart Foundation reports that there are over 100,000 hospital admissions in the UK each year due to heart attacks, which equates to one every five minutes. In the unfortunate event that you pass away as a result of a heart attack, your life insurance policy should provide a payout.For those who survive a heart attack, it can be difficult to return to work full time, and managing finances can become a struggle. If you want to protect your finances in the event of surviving a heart attack, you may consider Critical Illness Cover. This type of insurance is designed to pay out a lump sum of money upon diagnosis of various illnesses, including heart attacks. However, the severity of the heart attack may impact whether a payout is due.
Does life insurance cover if I get cancer?
Cancer is a prevalent health issue, with statistics showing that 1 in 2 people born after 1960 are expected to get cancer in their lifetime, according to Cancer Research UK. If you pass away due to cancer, your life insurance policy should pay out.If your cancer diagnosis is estimated to have 12 months or less to live, your life insurance policy may pay out early through the terminal illness clause.
Surviving cancer can come with financial challenges, especially if you are not able to work. In this case, you may consider getting Critical Illness Cover. This insurance pays out a lump sum of money upon diagnosis of a wide variety of illnesses, including cancer, depending on the type and severity of cancer. This payout can help cover the cost of living expenses and medical treatments associated with cancer.
Protection Heroes Questions
I’ve received so many calls from you. How can I avail the option to not get calls from you?
We apologize if our attempts to contact you have been bothersome. We understand the importance of peace of mind for our customers and are dedicated to providing families with protection.If you no longer wish to receive calls from us, you can inform one of our team members during a call and we will ensure that your number is not contacted again, unless you request a quote in the future. Alternatively, you can use our Opt Out Form to request that we stop contacting you.
Please be assured that we handle and process your data with utmost care and adhere to strict standards.
Why are you calling me? I need an online quote
Life insurance is different from car and home insurance as it involves considering a person’s health and lifestyle. It is better to speak to a real person than to rely on an online form to ensure everything is accurate and that your family is protected properly. Recording calls can help resolve disputes that may arise in the future. Speaking with a genuine person helps them fully understand your needs, ensuring that you have the right cover and giving you peace of mind.How does Protection Heroes make money as it is known to be a free service?
Protection Heroes is a broker that offers its services free of charge, meaning that there are no additional or upfront fees for using our service. The insurance provider you choose through introducer fees, so you won’t be billed at any point during the process compensates us.As Multi Panel advised broker, we don’t favor any particular insurer or product. We are only provide you recommendations based on the information you have provided us to ensure the product you chose is according to your needs. It is imperative to ensure that the advice is given. Our commission is paid upfront, but if you choose to cancel your policy within a specific timeframe, we are required to pay it back. This motivates us to make sure you are satisfied with your policy and not pressured into buying something that doesn’t suit your needs.
What is your take on the best life insurances?
Life insurance policies can be confusing due to the many options available, including policy types, policy term, level of cover, illness cover or funeral benefits, monthly costs, and the life insurance company you trust to handle payouts.Choosing the right policy begins with selecting the policy type, with Level Term Life Insurance or Whole of Life Insurance being the most popular for Protect Line customers. The former provides protection for a specified period, while the latter guarantees a payout upon your death. The cost of Whole of Life is higher than Level Term due to the longer term of the cover. Other options include Over 50s Life Insurance or Joint Life Insurance.
The policy term, level of cover, and additional options are all
important considerations. The policy term depends on your individual circumstances and can be based on significant life events such as retirement age or mortgage repayment. The level of cover should be enough to cover your mortgage, funeral expenses, living expenses, credit card bills, and other expenses you may have. You may also consider options such as Critical Illness Insurance, which provides a lump sum payment if you are diagnosed with a serious illness.Life insurance premiums are calculated based on various factors, including health, age, and policy type. It’s essential to select an affordable policy to avoid missing payments and losing your cover. Protection Heroes works with reputable insurers, providing extra benefits such as mental health counselling, funeral benefits, Smart health, virtual GP and annual health checks.
Protection Heroes is an advised life insurance broker, which means they would gather information and give you the best suitable advise according to your needs. Therefore, Protection Heroes would recommend the best life insurance, which suits your needs. Protection Heroes only works with major insurers and offers a 30 day money back guarantee.
What if my insurance company goes bankrupt ?
The possibility of an insurance company going bankrupt can be concerning, especially if you have a life insurance policy with them. You may worry about what will happen to your policy and the premiums you have paid. However, it is highly unlikely that the insurer you choose will become insolvent. Protection Heroes life insurance panel comprises financially healthy and well capitalized companies that can pay out on any valid claim.Furthermore, insurance regulators keep a close watch on the financial condition of insurance companies, and most providers are publicly traded, which increases transparency. If an insurance provider does run into financial difficulties, then its customer list is typically acquired by one or more companies in the insurance industry. This protects the consumer and ensures that insurance claims can still be made.
If an insurance firm goes bankrupt and no other company takes on the policies before or during insolvency proceedings, the Financial Services Compensations Scheme (FSCS) will ensure that your insurance policy is honored. So, you can rest assured that your loved ones will still have financial protection in the event of an insurance company’s bankruptcy.
Life Insurance Explained
Do we term it as life insurance or life assurance?
The terms Life Insurance and Life Assurance are often used interchangeably, but there are slight differences between them depending on the context.Typically, Life Insurance refers to a type of insurance that offers protection for a fixed term. At the end of the term, the policy no longer provides coverage. It is considered insurance because the payout is only made if the insured person passes away during the term of the policy.
On the other hand, Life Assurance usually refers to a policy that has no fixed term and is also known as a Whole of Life policy. It is considered assurance because the policy is guaranteed to pay out on the death of the insured person, which is an event that is certain to happen.
If I have a medical condition, why does life insurance become more costly?
Life insurance premiums are determined by various factors, such as your age and medical history. Generally, younger and healthier individuals pay lower premiums as insurers base prices on the risk profile of the policyholder. Higher risk individuals such as those who are older or have certain medical conditions will have higher premiums.Protection Heroes cannot influence the prices set by life insurance providers or their criteria for assessing medical conditions. However, they will work with you to advice the best policy and provider for your needs.
For those concerned about the impact of an illness or medical condition on their premiums, there is the option of exploring non medically underwritten policies if they are aged between 50 and 80. Although such policies may not offer as high a payout as medically underwritten policies, they do provide some level of protection.
Does life insurance payout?
There is a common misconception that life insurance policies do not pay out, but this is simply not true. According to data from the Association of British Insurers (ABI), 98% of protection insurance claims were paid in 2021, making life insurance one of the insurance products with the highest payout rates. The most common reason for a policy not paying out is due to non disclosure or lying on the insurance application, which is why it is crucial to be truthful and transparent when applying for life insurance. To ensure accuracy, working with a phone based broker such as Protection Heroes can help you consider all the necessary medical questions and reduce the likelihood of unintentionally misleading the insurer or omitting important information.What are the parts that life insurance doesn’t cover?
Life insurance policies do not cover intentional self harm, recklessness, or suicide within the initial 12 24 months of the policy. It’s important to read and understand the policy wording for each insurer’s specific terms and conditions. Non disclosure of important information during the application process can also invalidate the policy. For joint life insurance policies, the death of one person means the policy no longer applies to the surviving partner and they would need to reapply if they wanted to maintain coverage.Is there a possibility to have multiple life insurance policies?
It is possible to have multiple life insurance policies, as long as you can afford to pay the monthly premiums. This can provide sufficient coverage for various stages of your life, and your beneficiaries can claim on all active policies in the event of your death. However, some insurance providers may question your motives and require evidence that your policies are appropriate for your situation, and that you can afford to pay multiple premiums. It is important to carefully weigh the pros and cons before deciding to take out multiple policies.Does smoking or vaping affect my life insurance?
When applying for life insurance, you will be asked about your smoking habits in the past few years. Smoking includes cigarettes but also electronic cigarettes, vaping, and any other nicotine or nicotine replacement products. Smokers can still get insured, but they should expect to pay higher premiums due to the risks associated with smoking. Lying or being misleading on your life insurance application can lead to your policy not paying out. The exact treatment of smoking and vaping varies among insurers. It is important to be honest when disclosing smoking related habits and to work with a broker, such as Protection Heroes, to find an insurer whose application wording is most suitable for your circumstances.Is my credit score affected by life insurance?
Life insurance does not have any bearing on your credit score or credit history, and payments made towards a policy will not be reflected on your credit report. It is crucial to select an affordable policy that does not place undue financial strain on you or your loved ones.In order to verify your identity during the application process, a soft credit check may be required, but this will not impact your credit score. Unlike car or home insurance, life insurance does not involve borrowing funds from the insurer, and as a result, it does not affect your credit score.
Monthly payments are required for life insurance, which can be cancelled at any time. However, failure to make payments will result in the policy lapsing and coverage ending.
How do I know if I’m eligible for life insurance?
If you are a UK resident between the ages of 18 and 85, you may qualify for life insurance coverage. However, there are some exceptions to this rule, such as some providers accepting customers as young as 16, subject to certain conditions. Additionally, if you spend time outside of the UK, your residency status may be assessed to confirm your eligibility for the product based on insurable interest in the UK, and payment must be made from a UK bank account. There are also options available for those on certain visas, recent emigrants, and refugees, which can be explained in more detail by a Protection Heroes Advisor.Your acceptance by an insurer will depend on your health and lifestyle. It is possible to obtain life insurance even with pre existing health conditions, including mental health issues, or if you are a smoker. However, as life insurance policies are medically underwritten, you will need to disclose any relevant information.
It is not necessary to be employed to be eligible for life insurance, and being on government benefits is acceptable. However, it is important to ensure that you can meet the financial obligations of the policy, and that monthly premium payments do not cause financial hardship for you or your family.
What can a life insurance do? what is it used for?
One unique feature of life insurance is that the payout is entirely unrestricted, giving the recipient complete discretion on how to use the money. However, this is not applicable when the policy is placed in a Trust, which may specify certain conditions for how the funds are utilized. Additionally, a Will can also have an impact on the way the payout is spent.Mortgage
A common desire for those with an outstanding mortgage is to use their life insurance proceeds to pay it off. This can offer a great sense of relief for surviving family members who relied on the deceased person’s income. Paying off a mortgage in the event of a loved one’s death can provide several options for those left behind, such as the option to reduce their work hours to care for children, the option to
continue living in the family home without the pressure to sell it, or the option to have one less monthly financial obligation.Inheritance Tax
If the value of your estate exceeds a certain threshold, it is possible that your beneficiaries may be required to pay a substantial amount of inheritance tax. In order to settle this tax, some individuals are compelled to sell the recently inherited home to release equity. To prevent this from happening, some people choose to obtain a life insurance policy that matches the expected inheritance tax amount.
Funeral
In the event of an unexpected death, surviving loved ones are often faced with the challenge of coming up with funds for a funeral, which can cost thousands of dollars. Life insurance proceeds are commonly used to cover these end-of-life expenses, or to reimburse any money borrowed from family and friends to cover these costs.
Financial Gifts
Life insurance can also serve, as a means to provide financial gifts to loved ones, which may potentially be tax-free, depending on the timing and manner in which the gift is provided. The funds may be intended for various purposes, such as university tuition, house deposits, new businesses, or weddings. In some cases, individuals who obtain life insurance hope that their family members will use the funds to enjoy life, such as taking trips or vacations that may not have been possible otherwise. This can be a way to make the most out of a difficult situation.
Living Costs
It’s important to consider what your family’s quality of life would look like if you passed away. Life insurance proceeds can also be used as a simple replacement for your income over a set number of years, used to support everyday living costs such as food, bills and clothes.
If I outlive the policy and don’t die, will I be provided with a refund?
- Some people may be hesitant to consider life insurance because they believe it’s a waste of money since they won’t receive any benefits if they outlive the policy. However, it’s actually a good thing if you outlive your policy since you were able to enjoy life and support your family during that time. Additionally, the protection provided by the insurance contract during the policy’s term was real, legally valid, and offered peace of mind.
- It’s important to note that there is no refund if you outlive your life insurance policy or don’t make a claim. This is similar to other insurance policies such as car or home insurance. Just because the terms of life insurance policies are usually longer than 12 months and you won’t be around to see the benefit of a payout (unless you have a terminal illness), it doesn’t mean it’s a waste of money. You are paying for time on cover every month, which is a benefit in itself.
- Life insurance can be viewed as a subscription product that offers protection in the form of an insurance contract. Although you won’t receive something physical for your money, like access to TV shows or ad-free music, the benefits of the product are still valuable.
- Some life insurance policies also offer non-contractual benefits such as video doctors, mental health support, health memberships, and retail discounts. These benefits are included in your monthly premium and have a cost to provide.
- Whole of Life insurance is an option for those looking for guaranteed coverage until they pass away. As long as you maintain your premiums, your loved ones will receive a payout when you eventually pass away. However, it’s important to note that this type of insurance is usually more expensive than standard term insurance with the same coverage amount.
Does life insurance cover children?
The primary purpose of life insurance is to pay out in the event of the policyholder’s death. Typically, the payout goes to the policyholder’s next of kin, but it is possible to name a different beneficiary in a Will or Trust. Life insurance can be a useful tool in providing for one’s children in case of the policyholder’s death.Some Critical Illness Cover policies offer a payout if a child is diagnosed with a specified illness, although this benefit may not be included in every policy. It is important to discuss this option with a Protection Heroes Advisor to ensure that it is included in the chosen policy. In some cases, Critical Illness Cover may also provide a payout to help cover the cost of a child’s funeral if they were to pass away.
What can you say is the minimum or maximum cover for life insurance?
When considering life insurance, it’s important to determine the right amount of coverage needed to fully protect your loved ones in case of your passing. Under
insurance should be avoided, as well as unnecessary over insurance. If you’re uncertain about how much coverage you need, Protection Advisor can help you calculate an appropriate figure.The minimum amount of coverage for standard life insurance is generally £10,000, although it may be possible to request less. On the other hand, there is no maximum coverage limit, but different insurers have varying risk tolerances and may charge extra for policies exceeding £1,000,000. If you need insurance for seven figures, insurers will require financial evidence to support your application. To simplify the process, you could apply for multiple policies from different insurers instead of one large policy.
For Over 50s Life Insurance, the minimum and maximum coverage amounts depend on your age. This type of insurance doesn’t require medical underwriting, so even those with poor health can apply for coverage.
The minimum monthly payment for life insurance is typically £5. The coverage amount that this payment can purchase is determined by the length of the policy term and various personal factors such as age, health, height, weight, and lifestyle.
Will the value of my life insurance still be the same in the future?
Inflation can affect the value of your life insurance policy in the future due to the rising costs of goods and services. However, for those who opt for a policy to pay off their mortgage balance in the event of their unexpected death, inflation may not be a concern as mortgage balances tend to decrease over time. Additionally, as wages generally increase over time, the fixed monthly premiums for a life insurance policy may feel cheaper as the years go on.To protect your life insurance policy from the long term impact of inflation, you can choose to add indexation when applying for a policy. Indexation can turn your policy into an increasing life insurance policy, which means that your cover amount will increase annually to keep up with inflation. It’s important to note that your premiums will increase as well to reflect this. This type of policy can be effective if you want to maintain the value of your life insurance over time, especially if you are looking to provide a significant financial gift or protect your loved ones’ quality of life, rather than just cover the mortgage balance.
Existing Customers
Who has the authority to receive my life insurance payouts?
In general, a life insurance payout is included in your Estate, which is the total assets left behind after your death. After paying off any outstanding debts or liabilities, your Estate is usually distributed to your next of kin or as per your expressed wishes in a valid Will. However, you can opt to put your life insurance policy in a Trust, which allows the payout to bypass your Estate and go directly to your selected beneficiaries. Protection Heroes can help you set up a Trust for free when you purchase a policy with them. The beneficiaries in a Trust can be anyone you choose, related to you or not, and you can specify certain conditions for underage children. It’s important to note that Trust planning and inheritance tax planning are not regulated by the Financial Conduct Authority.I didn’t reveal a medical condition in my policy, does it still confirm its validity?
The answer is No. The reason a life insurance policy may not pay out is if you failed to disclose a medical condition that you were aware of at the time of application. To ensure your policy is valid, you must answer all the questions to the best of your knowledge and disclose all relevant information about your health and lifestyle, including your medical history and that of your immediate family. If you did not do so, your policy may not pay out if you pass away, leaving your family in financial difficulties. It’s important to contact Protection Heroes immediately if you need to make changes to your policy.Is policy cancellation possible?
Protection Heroes is a Life Insurance broker in the UK and they have observed that many families suffer financial difficulties when someone unexpectedly passes away, often because the deceased had previously cancelled their life insurance. Although no one expects to die suddenly, it is more common than people realise, with 296,071 UK families receiving a combined payout of £6.8 billion in 2021 alone (according to ABI).If you are finding life insurance to be too costly, you can discuss affordable options with Protection Advisor can help you find suitable alternatives so that your family can still be covered in case of the unexpected. However, if you are thinking of cancelling your life insurance policy, you should consider the potential consequences, such as much higher premiums if you need to purchase insurance again in the future. Protection Heroes offers a cancellation request form for anyone who has thought through these potential consequences and still wishes to cancel their policy.
What is the procedure of updating my address?
It is crucial to keep your life insurance documents up to date in case you have made any changes such as moving to a new address or updating any key information. By doing so, you can avoid any possible issues or delays when it comes to a potential payout. It is recommended to get in touch with Protection Heroes and inform them of any changes. You can simply send an email to our Existing Customers team and they will guide you on the necessary actions to take.Can there be any developments made on my existing policy?
Modifying your current life insurance policy is possible, but it may result in either reduced coverage or increased premiums, depending on the changes you want to make.
If you wish to lower your monthly payments, you will need to cancel your current policy and get a new one with a lower premium amount. However, this may lead to a significant reduction in the amount of coverage you have or how long you will be covered.If you want to increase your coverage amount, you may be able to do so without answering any new medical or lifestyle questions. Many life insurance policies include a Guaranteed Insurability Option (GIO), which allows you to raise the sum assured (i.e. the coverage level) and sometimes even alter the term without undergoing reassessment. Each insurer has its own set of rules, but generally, you must make the changes promptly after a significant life event, such as the birth or adoption of a child, getting married or divorced, receiving a pay rise, or purchasing a new home, to qualify for GIO. If your request is outside the GIO criteria or your policy does not have this feature, you may need to submit a new application to obtain additional coverage.
Is there a chance to reduce your monthly insurance payments?
Yes, Protection Heroes can help reduce your monthly life insurance premiums if you’re struggling to make payments. To do this, your existing policy will be cancelled and a new one created with a lower premium amount. However, it’s important to note that this may result in reduced coverage or a shorter term for your policy. If you’re having difficulty meeting your payments, you can contact Protection Heroes and they will work with you to either adjust your current policy or find a new one that fits within your budget.Is it permissible for me to take a payment break?
It is crucial to keep up with your monthly payments to avoid your policy from lapsing and ceasing coverage. If you do miss a payment, some insurers offer a grace period of approximately 30 days to prevent accidental cancellation of direct debits.However, it is not recommended to rely on this grace period.
If you are having difficulty making your payments, please reach out to us so that we can assist you in modifying your current policy or finding a new policy that fits your budget.
I have changed my name; how do I change my information?
To ensure that your life insurance policy is up to date and to prevent any potential delays or issues with a life insurance payout, it’s important to contact Protection Heroes if you’ve had any changes to your personal information such as a name change. You can do this by sending an email to our Existing Customers team and they will guide you through the next steps.How do I fix the problem I encountered in my policy?
It is crucial to keep your policy documents updated and accurate to ensure that your life insurance policy is valid and that there are no delays or problems with potential payouts. Protection Heroes advises that you contact them immediately if you notice any mistakes or need to update your personal details such as name, address, or direct debit information. Changes like these are generally a straightforward and speedy process. However, if there are errors in your age, height/weight, lifestyle, or undisclosed medical conditions, it could result in an increase in premiums or even an invalidated policy. Protection Heroes are available to assist you with any updates or corrections, although you may need to verify your identity over the phone and have the conversation recorded for regulatory purposes.Will you provide me with my insurance paperwork?
Once you have purchased life insurance or critical illness cover with Protection Heroes, you will receive an email with the policy information attached. It is important that you take the time to read through the attachments and ensure that you understand everything and that all your personal details are correct. If you have any questions or concerns, you can simply reply to the email or use the ‘Contact’ tab on our website to get in touch with our team.It is worth noting that you are entitled to a 30 day money back guarantee if you are not satisfied with your policy. This gives you the peace of mind that any changes or cancellations can be made easily and without penalty. Furthermore, you are protected by the Direct Debit guarantee, which means that you are entitled to an immediate refund from your bank or building society in the event of an error.
Although physical paperwork is not necessary for making a claim, we understand that some customers prefer it. If this is the case, you can request for your documents to be sent to you via post when speaking to our staff. Please allow two to three weeks for delivery and if you have not received anything after this time, please do not hesitate to get in touch with us to request a resend.
At any time, Protection Heroes can confirm your insurance details or make changes to your policy. All you need to do is get in touch with our team and we will be happy to help.
If I stop paying my life insurance premiums, what will happen?
Please make regular monthly premium payments to keep your life insurance policy active. Failure to pay premiums may result in your policy being terminated and you losing coverage. If you miss a payment, Protection Heroes will try to reach out to you to help you reinstate your policy. We understand that missed payments can happen accidentally, so we offer a grace period to help you catch up on missed payments. If you are having difficulty keeping up with your monthly payments, please contact us as soon as possible. We are here to help you find ways to reduce your premiums, adjust your coverage, or find a new policy that fits within your budget.What will happen, incase if I die?
In the event of your death while having an active life insurance policy, your loved ones may be eligible to receive a payout. It is important to inform your family about your life insurance policy so that they can initiate the claims process upon your passing. To ensure that your policy is not overlooked, it is recommended that you email the policy to a trusted person or provide printed copies to your family.Each insurance company has a dedicated claims phone number and trained personnel who can assist with arranging the payout. To process the claim, evidence of your death and the identity of the claimant will be required. If the claim is approved, the payout will be deposited into your personal bank account or the account of the Executor of the Will. Those with Probate, the legal authority to manage your assets after your death, can access the funds and distribute them according to your wishes as outlined in a valid Will. Alternatively, the payout can be sent directly to the bank accounts of beneficiaries named in a valid Trust, avoiding the probate process.
Will I be given cheaper life insurance payouts if I stop smoking?
The cost of life insurance can be influenced by various factors, including health and lifestyle choices such as smoking. Smokers typically pay more for life insurance than non smokers, with some insurers charging almost double the premium amount. Insurers generally define a smoker as someone who has used tobacco or nicotine products within the past 12 months to 5 years, which includes e cigarettes, vaping, and nicotine replacement products like patches. Honesty is crucial when applying for life insurance, as withholding or misrepresenting your smoking history could invalidate your policy.If you quit smoking for 12 consecutive months after purchasing your life insurance policy, you may be eligible to reduce your premiums, but this depends on the insurer and requires a cotinine test. Sometimes, you may need to reapply for life insurance to benefit from lower premiums or be stuck with higher premiums.
What is the process to change the details of my bank account?
If you want to modify the bank account from which your life insurance premium is deducted, you have two options. You can either use your bank’s Current Account Switching Guarantee or contact Protection Heroes, and we will update your bank account details for you.During the period when you switch your bank account, it is important to keep a close eye on your monthly payments for life insurance. There is a slight grace period to allow for errors, but missing several payments will ultimately cause your life insurance policy to lapse, and coverage will be terminated.
If, during a change of bank accounts, a payment is taken twice, you are protected by the Direct Debit Guarantee. This means that you can request a refund of one of these payments.