What steps have you taken to ensure your family’s financial security if you die?

The UK has one of the highest death rates from heart disease in the world – one British adult dies from the disease every 3 minutes.

(Source: BBC Health Information 2000)

Are you paying too much for your current life insurance?

Did you know that you could have £100,000 worth of life assurance for as little as £1.70 per week?

(Figures based upon a male aged 26 years, non smoker, term assurance over 15 years. Source: The Exchange, February 2005).

Life Cover - how does it work?

There are many different types of life cover. Basically, the main purpose of life cover is to provide a sum of money to your family in the event of your death.

The main reasons for taking out a life cover policy are to cover a mortgage, or to provide security for your family after your death.

Types of life cover

Mortgage protection
This type of life cover is designed to provide cover for a specific period (the mortgage term) and will reduce in line with the mortgage balance. This type of plan is sometimes called Decreasing Term Assurance.
Term assurance
This type of life cover will last for a specific period and provide a level (or increasing) level of benefit. This could be used to provide a lump sum for you family after your death, or to cover an interest only mortgage.
Whole of life
This life cover will provide cover for all your life until your death. This can mean that this type of cover may be more expensive than other forms.

There are other forms of life cover available under an endowment policy or a pension plan, but those listed above are the main types available today

When you take out a life cover policy, you will be able to select the level of cover that you require. The premium will reflect this, as well as your age, sex, and health history. So long as you maintain your premiums, the benefits will be paid out tax-free (in most cases) on your death. You can take out a policy on your own life, or with your partner. You may also combine some forms of life cover with critical illness cover.

HCR has access to all major insurers

What is ‘term assurance’?

Term assurance is a particular form of life cover.

The idea of term assurance is to cover you for a particular period (or term). So long as you maintain your premiums during this term, your policy will pay out on your death. Term assurance can increase, decrease or remain level throughout the life of the policy.

Term assurance is a relatively cheap form of life cover. In addition, you may combine this type of insurance with critical illness cover.

Usually, the proceeds of a term assurance policy will be paid to your family tax-free. In addition, you can also place the policy in trust so that this is guaranteed.

What is Critical Illness Cover?

Critical Illness Cover provides you with a lump sum if you are diagnosed with a named, serious illness. This could be illnesses such as cancer, types of heart attack and stroke.

The idea of critical illness cover is to provide you with a lump sum of money when you most need it - when you have been diagnosed with a serious, life threatening illness.

The proceeds from a critical illness cover policy will pass to you tax-free. They can then be used for any purpose -to pay off your mortgage or to provide care or alterations to your home.

Critical illness cover has become more expensive in recent months due to the number of claims. This means that it may be better to buy a policy now, while this type of plan still exists.

Critical illness cover will run for a set period of cover. You may select premiums which remain the same, or will be reviewed. The premium that you will pay depends on your age, sex, the cover selected and your health history. Critical illness cover may be combined with life cover.

Please read our ‘Key Facts about our insurance services’ page.