Can I receive a refund of my Life Assurance premiums if I haven't
needed to make a claim?
Most term assurance policies do not contain a savings element
but do provide financial protection if you die within a specified
period of time, or what is referred to as 'the term'. If you are
alive at the end of the term, or you cancel the policy, no payment
is made and there is no surrender
value - meaning that if you stop
paying the premiums, you will no longer be covered and you will
not receive a refund of premiums paid.
Some term assurances have a savings element as well, although
this is usually a small amount only and premiums tend to be higher
for the same sum assured.
How long does the term of the Life Assurance Policy have to be?
The term is usually for periods such as 10, 15 or 20 years, but
cover can be arranged for periods as little as 1 month. The term
you choose will depend on your own circumstances, and the reasons
you have for wanting to take out protection. For example some people
may link the term to a mortgage or loan debt. Other people may
link the period to the time they feel their children will be financially
dependent.
Is it cheaper to have a joint Life Policy or two separate Life
Policies?
It is often cheaper to have a joint life policy that pays out
on the death of the first to die. Two single life policies are
often more expensive but will cover you both individually, and
each policy would pay out the benefit, if each of you were to die
during the respective terms of each policy.
What is the average sum assured?
There is no average sum assured. The amount of benefit chosen
will probably reflect your reason for taking out protection. Things
you might consider could be the amount of mortgage or any other
loans, the normal cost of living expenses, loss of salary or the
cost of childcare. Think how your family would suffer financially
if you or your partner were to die. Ask us for advice on the correct
amount of cover for your circumstances.
What is Terminal Illness benefit?
Some policies have what is called a terminal
illness benefit which
is the acceleration of payment of the death benefit. Should you
be diagnosed with an illness from which you are expected to die
within 12 months, and before the end of your policy, the benefit
may be paid out early.
If you can't find the answer to your specific question, please
contact us with your question or to arrange an appointment to discuss
your personal circumstances.
| The Financial Services Authority does not regulate some
forms of life assurance advice, although it does regulate
the financial soundness of insurance companies. |
Hedgelands Financial Services Ltd, Hedgelands, Abbotskerswell, Newton
Abbot, TQ12 5PW
|
Telephone
0845
165 1280
General Insurance
0845 165 1281
Fax
01626 332622
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