Searches for Life Insurance UK have spiked 35% in the last three months, and 10% in the last month, with more people looking to protect their loved ones in the event of their passing and not leaving them with hefty bills.
Lasee Kurkaa of uk-lifeinsurance.com has answered the internet’s most asked questions about life insurance, including questions about coverage, critical illness, terminal illness coverage, and more.
What is life insurance?
Life insurance is a type of policy designed to provide financial support to your loved ones after you pass away. It offers peace of mind by ensuring that your death won’t adversely impact your family’s finances. This support can help cover funeral costs, repay debts, and maintain their living standards during their period of grief.
What does life insurance usually cover?
Life insurance provides crucial financial protection for your loved ones in the event of your passing. Different life insurance policies are available to suit various needs and situations. For example, critical illness cover offers a lump sum if you’re diagnosed with a specified serious illness, while mortgage life insurance ensures your mortgage is repaid.
What is critical illness cover?
Critical illness cover provides a tax-free lump sum if you’re diagnosed with a specified serious illness. This payment can help cover lost income, adapt your home for accessibility (e.g., wheelchair access), or support other financial needs during your illness.
What critical illnesses are covered?
The illnesses covered by your insurance policy will vary depending on its comprehensiveness. Typically, policies from leading insurers provide coverage for major conditions such as strokes, heart attacks, specific cancers, and traumatic head injuries.
When might a critical illness policy fail to pay out?
Common reasons for life insurance claims being denied include misrepresentation and not adhering to policy terms. Misrepresentation happens when crucial information, such as smoking or drinking habits, is omitted during the application, especially if later claiming for related conditions like liver or lung cancer. Other factors may also apply, depending on individual circumstances.
Terminal illness cover: what is it?
Terminal illness cover provides a tax-free payout if you’re diagnosed with an incurable condition and have less than 12 months to live. This essential life insurance can help compensate for lost income and support your family during a difficult time.
Why might a life insurance claim not pay out?
A life insurance claim may be denied for various reasons specific to each policy. To boost the chances of a successful UK life insurance claim, be upfront with your insurer, inform them of life changes, and note your policy’s expiry. This honesty ensures your beneficiaries are more likely to receive their payout.
What are the best life insurance plans with critical illness coverage in the UK?
Many of the UK’s most reputable insurers provide life insurance and/or critical illness coverage, including the likes of AIG, Aviva, LV, Royal London, and Zurich. Coverage and plans can differ depending on a variety of factors, including the level of insurance required, desired payout, and term, so the best plan for someone could be insufficient for someone else. So it’s important to compare insurance from each provider to make sure it’s right for you. You can compare insurers, coverage type, and costs with comparison websites, such as uk-lifeinsurance.com, or go directly to individual insurers.
