What do I need to know about Life Insurance?

Life Insurance is a good way of providing a lump sum if the policyholder dies within the term of the policy. This lump sum is free from income tax and capital gains tax but may be liable to Inheritance Tax. Any potential liability to Inheritance Tax can be avoided by having your policy "Written in Trust".

Life Insurance has no investment value - so if you don't make a claim and the policy comes to an end, then you will not receive any money back.

Before you request a quote, consider the following:

• How much cover do you need
• How long do you want the insurance policy to last
• Do you want a Joint or Single policy
• Do you want a Guaranteed or Reviewable policy

These are some important points worth remembering:

• If you want your mortgage to be paid off in the event of your death then you must insure according to the amount you owe your mortgage lender.
• 20 - 25 years is the most common policy length, although you can arrange longer or shorter terms. 5 years is considered to be the minimum.
• You probably won't be able to get insurance past the age of 70.
• Terminal illness cover is usually automatically included for no extra cost.

For more details on all the above look at our full FAQ menu.