Life Insurance

Life Insurance - Exactly the right policy to provide for your loved ones

Whilst nobody likes to think about death, many of us wouldn’t think of leaving our families in a financial crisis should we suffer an untimely death. This is why Contact Insurance offers a whole range of life insurances to suit your income, lifestyle and requirements. Why not call one of our advisers now on 0800 328 5773 or click the link to the right and let us recommend the best policy for you.

Quick Guide to Life Insurance

At its most basic, life Insurance pays out a tax-free lump sum if you die before a certain age, making it one of the cheapest and simplest forms of personal insurance available. The money can be used in whatever way your beneficiaries would like - to pay off the mortgage, pay off outstanding debts or to provide an income for their future.

However, there are plenty of options available to you:

Level Term Assurance - This insurance is great because you know exactly what your premiums are every month (as they don’t change) over a specified period of time. The tax-free sum that is paid out on your death also remains the same.

Decreasing Term Assurance - This insurance is linked to the outstanding balance on a repayment mortgage and decreases as the mortgage reduces in line with the debt to be paid off. This is a cheap and affordable insurance as it has lower premiums than a level term policy.

Increasing Term Assurance - Due to the effects of inflation, the sum of money to be paid out on death on a level term assurance can actually be worth significantly less by the time it is paid out. Increasing Term Assurance is designed to increase the sum assured every year and ensures you benefit from the actual value lump sum that you originally required. The premium payments will also increase at the same rate as the value of the sum assured.

Reviewable Insurance - To ensure you get the best value for money from your life insurance, some insurance companies give the option to review the cost of the premiums every two or five years. This can certainly work cheaper in the early years.

Whole of Life Assurance - As the name implies, whole of life assurance policies give you protection for life. Unlike term assurance that only pays out if you die during the term of the policy, a whole of life assurance policy always pays out eventually.

For this reason whole of life assurance can be more expensive than term assurance, although this is not always the case.

Gift Inter Vivos Life Assurance - Gift inter vivos life assurance is a policy that provides a cash lump sum to cover any potential Inheritance Tax (IHT) liability if the donor of a gift dies within seven years of making the gift. Premiums are always fixed at the outset and will not change during the term of the policy. The term of the policy is always 7 years. The cash lump sum paid on death goes down over the term of the plan as the IHT liability is reduced. Contact Insurance will compare gift inter vivos life assurance policies from Legal & General, Scottish Provident, Standard Life, Liverpool Victoria, Prudential, Norwich Union and other life insurance underwriters to make sure you get the best premium available.

Critical Illness Insurance - Critical Illness Cover is an insurance plan that pays out a guaranteed cash sum if you're diagnosed as suffering from a critical illness covered by the plan. There is no payment if you die.

You can take out the plan on your own or with someone else. For joint policies the cash sum is normally payable only once, on the first claim.

Terminal Illness insurance - Terminal Illness Cover is very different to critical illness cover. The sum insured may be paid out if you suffer a terminal illness that will lead to death within 12 months, allowing you to make arrangements for your dependants while you are alive.

Whatever policy you choose, we recommend you consider putting your policy in Trust to ensure your beneficiaries receive the money without suffering inheritance tax.