Life Insurance

Important life events are often unexpected. Life insurance exists so that you can provide financial protection for your family and loved ones when you  die or if you are diagnosed with a terminal illness (provided life expectancy is less than 12 months).

If you take out a life insurance policy it can mean that when you eventually pass away, your estate receives a lump sum payment that can help clear outstanding debts (including your mortgage). Some insurance policies will allow you to arrange a regular income if you prefer.

Common reasons why people take out life cover:

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To repay the mortgage

Your home is usually the largest investment you will make, and life insurance is a great way to ensure that it is properly protected.

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To provide for their family

Life insurance can help insulate your family from the financial impact resulting from your death

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To pay for funeral costs

Funerals are often a forgotten expense, nowadays as with most services, costs are increasing.

Life insurance isn’t a legal requirement, but the right policy can give you the peace of mind that your family can continue to pay bills and living expenses during the most difficult of times.

Sadly, regardless of age, even the healthiest of people can suffer an accident. If the worst happens, life cover provides you and those closest to you with important financial protection.

If you are considering life cover, our award-winning team are trained to never use jargon, only plain English so that you can make clear, informed decisions.

What is life insurance?

Life insurance is a type of insurance policy where you pay a monthly premium to secure a financial payout to a designated beneficiary when you pass away.

It is a legal contract between an insurance policyholder and an insurance provider.

If the worst should happen during the term of your policy, your family and loved ones can receive a sum of money to help cover their living expenses, pay off debts or simply pay off the mortgage. The insurance payout could also help cover things like funeral expenses.

There are also different types of life cover such as Critical Illness & Income Protection that can run alongside your life insurance policy and provide financial security through challenging times.

What are the main types of life cover?

There are different types of life cover policies that can give you lump sum payments, or, a regular monthly income.

Level term life insurance is where the premiums and amount of cover stay the same during a policy term. In other words, the amount of cover is ‘level’.

  • This type of policy can help your family meet various ongoing living costs if you die.
  • Can be used to pay off an interest only mortgage

 

Decreasing term Life Insurance is a type of insurance that’s designed to help protect a repayment mortgage. 

The amount of cover reduces roughly in line with the way a repayment mortgage decreases. Premiums stay the same during the length of the policy.

A cash sum would be paid out if you die or are diagnosed with a terminal illness with a life expectancy of less than 12 months, while you’re covered by the policy. 

This could be a suitable option giving you peace of mind that your family can continue living in their home if something happens to you. 

The simplest way to describe increasing term cover is a life insurance policy whereby the amount insured increases by the amount of inflation each year. As the sum insured increases, your premium will also rise to reflect the increased benefit.  Arranging increasing cover with an ‘index-linked option’ will help to offset the effects of inflation.

Most policies can be arranged to increase in line with the retail price index, or in the case of some insurers, by a specific percentage eg 5 per cent per annum.

You only have to look at your weekly shopping bill or the cost of fuel to see how prices have increased over the years. We recommend index linking to maintain the value of the amount you insure.

If you should change your mind:

Most providers allow an ‘opt-out’. You will receive a letter from your insurance company every year informing you of your new premiums and benefits for the following year. At this stage, you can opt-out of the indexation, and your premiums and benefits will be frozen at their current levels.

Family income benefit, or FIB, is a type of life insurance policy. Where it’s different from standard life insurance is that it pays out a regular monthly income, rather than a lump sum. It can be used to cover spousal maintenance payments, provide money for the monthly bills or payments for school fees.

 

Whole-of-life insurance is a type of life insurance policy that guarantees to payout a lump sum whenever you die.  

 This is in contrast to level/ decreasing or increasing term life insurance. Which only guarantee that there will be a pay out should you die within the specified term of the policy.

 The premiums for Whole of Life Insurance policies tend to be more expensive than those of Term policies, as they are guaranteed to pay out.

The actual cost of your whole-of-life insurance policy will come down to a host of factors about you, such as how much cover you want, your age, your health and your lifestyle.

If you cancel or stop paying your premiums, you won’t get any money back. There is no investment value in the Whole of Life Insurance policies that we arrange.

Why do people choose Whole of Life policies?

There are many reasons why people choose whole of life policies. Not least because they are guaranteed to pay out whenever you die. They can be used to:

  • Cover their funeral costs or to leave a lump sum for family
  • A Whole of Life policy could be used to help cover a potential Inheritance tax liability (IHT)* 

Upon death, (IHT) is paid on any part of your estate that exceeds £325,000 (or, £650,000 for couples). The individual threshold will increase to £500,000 if you own your own house (or have a share in it) and the house is left to your children or grandchildren. These levels are called the ‘nil rate band’ up to these amounts no IHT is payable. 

The current rate of IHT is 40%. *The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances. 

A guaranteed over 50’s plan is a Whole of Life Insurance plan that pays out a cash sum when you die. Sometimes it is also called Life insurance for seniors.

Acceptance is guaranteed, with no medicals or health questionnaires to complete; quite simply you will be covered regardless of any health issues you may have, as long as you are between the ages of 50 and 80*. 

 A guaranteed over 50’s plan can leave money to those you care about, giving them the flexibility to use it in a way that suits them:

  •  Help with funeral costs
  • Pay off outstanding debts or bills
  • Leave as a gift for grandchildren

The diagram below shows how different policies work when it comes to sums insured across the length or term of each policy.

  • The decreasing term policy shows that the sum insured reduces over the term to match the reduction in outstanding mortgage balance.
  • A level term sum insured remains the same across the entire term of the policy.
  • With the increasing term policy the original amount insured increases with inflation, meaning that the payout will have held its value for the future.
Different types of insurance slide

We search the UK’s market-leading insurance providers
to get you the right cover at the best price

How much does life insurance cost?

The cost of your life insurance policy will be dependent on various factors that include:

  • Age
  • Health & lifestyle
  • Medical history
  • Smoking status
  • Type of cover required
  • Amount of insurance needed

Many people are surprised to know that the price of your monthly insurance premiums can start from as little as £5 per month. At Future Proof, our expert team can provide quotes for all budgets and circumstances to make life cover affordable.

Below is an example of how the cost of life insurance premiums can change depending on the age and type of insurance. Please be aware that this is an illustrative example.

This table illustrates monthly premiums payable for level term insurance by age and sum insured

Please note that any monthly premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. The monthly premiums shown are an average of the 5 cheapest insurers. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

Quotes provided July 2023. Quotes based on a male non smoker rates.

Age in yearsSum assured in £sTerm in yearsMonthly premium in £s
32£500k30£20.71
32£300k30£13.35
45£500k30£65.45
45£300k30£39.85

If you want to find out how much your life insurance premiums might cost you each month our award-winning team of expert advisers are here to help.

Once we fully understand your specific circumstances, we conduct pre-application research by contacting several insurers to determine the best outcome for our clients. This means we can avoid any nasty shocks later on during the underwriting process.

Did you know?

£6.85bn was paid out in protection policies in 2022. That’s 97.5% of new claims paid*.

*Source Association of British Insurers 2023.

How does life insurance work?

Life insurance works by simply choosing the amount of money you would like to be paid out when you pass away, how long you might need it for and whether or not you want to take out a single policy or a joint life policy.

Your insurance policy can also cover you if you are diagnosed with a terminal illness and are not expected to live longer than 12 months.

It is important to remember that a life insurance policy is not a savings or investment product. Life cover has no cash-in value at any time. This means if you stop making your monthly insurance payments at any point, your cover will end and you won’t receive any form of financial payout, or return of your premiums. 

At Future Proof, we help our clients by advising on the right type of life cover and searching the UK’s leading Life Insurance providers to get competitive quotes. 

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Do I need life insurance?

Whether or not you need life insurance is a personal decision. Life cover is not required by law.

A good question to consider is whether or not the people who are financially dependent on you (such as your partner or your children) would be able to cope if you were no longer there to provide financial support.

If the answer is no, taking out a life insurance policy is an option that can give your loved ones both financial security and peace of mind.

Do I need life insurance for a mortgage?

Although Life insurance isn’t a legal requirement, your mortgage provider may require you to take out life insurance as part of your mortgage agreement.

For most homeowners, having financial protection makes sense. It means that if you were to suddenly pass away, the mortgage would be paid off immediately, leaving your loved ones with their own home and the mortgage company debt-free.

Taking out a mortgage is usually the biggest financial commitment a person will make in their lifetime. Taking out protection to cover your mortgage, provide for loved ones and ensure that they have a home is an important thing to consider. 

We have access to software that compares different areas of quality across insurers, including claims processing and additional benefit access; giving you peace of mind that you have chosen knowledgeably.

How much life cover do I need?

The amount of life cover you need will depend largely on your circumstances and how much financial security you would like to provide.

If you are a homeowner, you may want to make sure that you take out enough insurance to at least cover the cost of your mortgage. 

You may also want to consider things like:

  • cost of living
  • childcare costs 
  • education

Do you want to provide enough money to take care of these things too?

Some people consider their annual salary and multiply that figure by the number of years their loved ones could be financially dependent.

If your annual salary is £30,000 and you think your family may be dependent on you for at least 15 years, you may decide you need up to £450,000 of life cover.

You may also want to consider how circumstances may change if you or your partner die and the remaining partner may need to work fewer hours to look after your children or be there for dependants.

Generally speaking, the more cover you take out, the higher your insurance premium will be. You should be honest about the legacy you want to leave and how important it is to ensure your loved ones are protected.

Did you know?

The cost of life insurance gets more expensive as you get older. Once you lock in rates the premiums remain the same for the policy term. *

*Does not apply to index-linked policies or policies with reviewable rates

What affects the cost of life insurance?

How much your life insurance premiums cost will be dependent on many factors.

Future Proof will look for the best possible option that’s within your budget.

  • In most cases, the older you are, the more you will pay for a life insurance policy. This is because you are considered to be more of a risk to an insurance provider as you have a higher risk of passing away while your policy is running.

    Premiums will often remain fixed throughout the lifetime of the policy which means that you may save money by paying lower premiums if you arrange life insurance when you are younger.

  • Your lifestyle can have an impact on your life insurance premiums. If your favourite pastime involves adventures like rock climbing, scuba diving or flying light aircraft, you might have to pay higher premiums for life cover.

    If you take part in high-risk activities, it unfortunately raises the risk to your life and the risk of insurers having to pay out early.

  • Smoking is a lifestyle habit that can greatly impact the amount you pay for life cover. Smoking unfortunately puts you at a higher risk for all sorts of health conditions which means that smokers pay more than non-smokers for equivalent cover.

  • Millions of people across the UK struggle with their weight. If you are substantially underweight, overweight or obese, arranging life insurance on your own can be tricky. It can often result in the premium you were originally quoted being increased (loaded) once the application has been assessed. In some cases, the application can even be declined.

    The purpose of an increased insurance premium is to reflect the level of increased risk that the insurer is accepting. If your Body Mass Index falls within the range considered acceptable by the insurer, your weight will likely not have an impact on your application. It is worth knowing that different life insurance providers have different opinions of what an acceptable weight should look like.

  • Your medical history can impact the amount you pay for life cover and whether or not your application is accepted. Every life protection provider has a list of pre-existing medical conditions that may affect your life insurance premium. Some of the most common conditions include:

    Arthritis
    Asthma
    Cancer
    Cholesterol
    Diabetes
    Heart disease / high blood pressure
    Mental health conditions
    Obesity

    Depending on your pre-existing medical condition, insurers will want to know if you have had any health issues in the past – whether that is recently, or at any point in your life.

  • The amount of cover you need will impact the cost of your insurance premiums. The more money you need to insure, the higher the premiums will be.

    To assess how much life insurance you need, your Adviser will ask you the following questions:
    • Mortgage – How much is outstanding? What is the remaining term of the mortgage?
    • Rent – How much rent do you pay per month? Also, consider how much your rent may increase in the future
    • Debts – What is the total amount owed and over what term?
    • Outgoings – regular monthly bills such as travel costs, utility bills, council tax, school fees and maintenance payments
    • Family – How many children/dependents do you have? How old are they? And how long do you feel they will be dependent upon your income/care?

    Future Proof will look for the best possible option that’s within your budget.

  • The length of your insurance policy will be an important consideration. Not only do you need to consider the cost of your insurance premiums, you will also want to avoid the term ending too early if the need for life insurance is still there. The longer your policy term the higher the premium will be. This is because there is a higher risk for the insurer having to pay out within the term.

    Re-applying for insurance at an older age will likely mean you paying a higher premium over an extended term.

    In order to assess how long your life policy is best to run for, your Adviser will ask you:

    • How long is the term of your mortgage?
    • What is your expected retirement date?
    • Do you have any outstanding loans – over what term are they?
    • How many years do you think your children will be dependent on you?

    The answers to these will help determine the length of the life insurance policy and the amount you will pay.

  • Sadly, there is nothing anybody can do about their family’s medical history. If heart disease, strokes, cancer, and other serious conditions run in your family, your risk of developing these conditions can be raised.

    Some insurers that place a higher emphasis on your family’s health than others. If you need help, our team can find the most accommodating insurance provider according to your circumstances.
    An insurer is usually interested in any medical conditions that have affected your parents or siblings which may have led to an early death.
    If you have a family history of any serious medical conditions it will likely have an impact on your insurance premiums.

  • The nature of some occupations means that they are more dangerous than others.  If you work in a job that is high-risk, it could mean that you will end up paying higher premiums. For example roles that include diving, overseas business travel, and working at heights and some military roles can fall within this category. Your occupation is a factor we look at when comparing quotes.

What does life insurance cover?

In the event of your death, life insurance can cover several things such as mortgage or rent payments, funeral and burial costs, and outstanding debts. It can also provide a source of income for your dependants to help with day-to-day expenses.

There are several types of policies available, each with different features and benefits. It’s worth noting that not all life insurance policies are the same, it’s important to research the different options available and choose a policy that meets your specific needs. Some policies may have exclusions for certain causes of death, such as suicide, so checking the terms and conditions before purchasing is essential.

The benefits of life insurance do not have to stop at just a single payout when you die. Life cover can also cover a broad range of conditions and life events. Here are some common alternative protection products.

  • Terminal Illness Cover is an insurance option available to provide financial support in the event of a diagnosis of a serious medical condition. It pays out a tax-free lump sum if you die or are diagnosed with a terminal illness during the term of your policy. This can help with expenses such as medical bills or home adaptations. Most life insurance policies include Terminal Illness Cover as standard. This means that if you are given less than 12 months to live during the term of the policy, most insurers will pay out the sum assured while you are still alive.

    The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

  • A Waiver of premium is an additional benefit that can be included in your life insurance policy and offers protection in case you are unable to work due to a health condition, accident or sickness. Adding a waiver of premium means your life cover premiums will be paid by the insurance company until you are able to return to work. If you find yourself unable to work due to an accident or sickness. A Waiver of Premium is only available if you are employed, and usually only until you reach the age of 65.

  • An index-linked life cover policy ensures that the cover amount increases on an annual basis to combat the effects of inflation. This is important because, over time, the real value of your payout may decrease. For example, with inflation, £100,000 today will be worth less in 20 years as the cost of living increases and the prices of goods and services go up.

    By index-linking your life insurance policy, you can ensure that it maintains its value over time. It is important to note that your premiums will increase annually. Most providers give the option to opt out of indexation, meaning you can freeze your premiums and sum assured at any point, even temporarily.

  • Including critical illness cover in your life insurance policy can provide you with an additional layer of protection. Although it may be more expensive than basic life cover, it can provide a tax-free lump sum payout in the event of being diagnosed with any of the critical illnesses covered under the terms of the policy.

    When adding critical illness cover, there will be a single payout. On death or the diagnosis of a critical illness whichever happens first.

    It is essential to note that the terms and cover of critical illness policies can vary significantly between insurers. Therefore, it’s recommended to seek advice when selecting a policy with critical illness cover.

What does life insurance not cover?

Although life insurance is there to protect us when we pass away or become diagnosed with a terminal illness, there are some situations where a life insurance policy will not cover you. Below are some examples where your insurance policy may not cover you, even if you die.

  • If you stop paying your insurance premiums or if you are unable to keep up with the annual increase from index-linked cover.
  • Total disability – often included within a critical illness policy only
  • Death by Suicide, if you are within the first 12 months of the policy start date
  • Policy cancellation. If you cancel your life insurance policy, you and your family will no longer be covered unless you have another policy in place
  • Critical illness – these conditions are covered with a separate critical illness policy which we can advise on
  • Outliving your policy term – If you have taken out term life insurance and you outlive the term, no payout will be made and you may need to find new cover to protect you for the remainder of your life.

Remember, every policy differs in its terms and conditions so you should make sure you fully understand the details of your insurance policy and make sure you have the right type of cover.

When is the best time to get life insurance?

You can take out life insurance at any age and there are advantages to taking out protection from an early age.

Many financial experts recommend that you take out life insurance before you reach 35. After this age, both premiums and health conditions will likely rise. Your choice of cover may also be limited, especially if you begin to suffer from medical conditions associated with ageing.  If you are over 30 years old and don’t have any form of life cover it could be worth considering.

The younger you are when you apply for a life insurance policy the more likely you will be locking in lower premiums compared to applying in later life.

However, you can apply for life insurance at any age and we regularly speak to people looking for over 50’s life cover.

Ultimately it is a personal decision and there is no right or wrong time to take out life cover. If you have responsibilities like a mortgage, family or any dependants, life cover can offer peace of mind.

What life insurance plan is best for me?

If you want the best life insurance policy for your specific circumstances, it is worth speaking to a qualified adviser. There are many different types of life cover and it is important you choose the right cover for your needs – both now and in the future.

If you are looking for the best type of life cover it may be worth asking yourself these 3 questions:

·       How long do you need life cover for?

·       What kind of payout do you want?

·       How much cover would you like?

Depending on your circumstances, you may also want to consider inheritance tax planning to ensure that your loved ones receive the most benefit. If you want to find out more about inheritance tax planning and products like Gift Inter Vivos, speak to our expert team.

Is it better to use an online comparison site or speak to an adviser?

We are often asked what the difference is between speaking to an adviser or an online comparison site. Here is some information for you to consider:

UK comparison sites – what do they do?

Whilst everyone is welcome to use a comparison website, here are a few points that highlight the differences between sourcing cover through an adviser and a comparison website.

We would recommend you speak to one of our advisers. Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget.

AdviserComparison site
An Adviser – Is qualified to give advice about a productA comparison site will not usually give you tailored advice
An Adviser – Provides a one-to-one relationship from start to finishA comparison site other than providing a list of insurers and premiums cannot advise you if you have a query, need explanation of small print or help with a future claim
An Adviser – Has a broad product and insurer knowledge with minimal gapsA comparison site relies on your research and your choice
An Adviser – MUST ensure the policy is right for youComparison sites have no such obligation. The onus of making the right choice of protection for your family is on you.
An Adviser – Will understand the policy wordings and can explain in simple termsYou must read and understand the wording yourself
An Adviser – Will have buying power and close relationships with insurersA comparison site will leave the post application discussion to you.

At Future Proof, our award-winning team are advisers, not salespeople. You and your family come first and are at the heart of any advice that we provide. As life insurance specialists we regularly help people with challenging health situations, hobbies or risky professions.

Whatever your circumstances, we are here to help you make the right decisions.

Frequently asked questions by our clients about life insurance

  • A life insurance quote is an estimate of how much you might pay each month for a life insurance policy (commonly called a ‘premium’).  Your initial quote will be based on the personal information you have provided. If you are happy to proceed, an exact quote can be obtained after an insurer has your full personal details including medical history.  

    A life insurance quote is not an offer of insurance, the offer will come after the insurer has assessed your application.

    Our expert advisers will obtain exact quotes for you by contacting multiple insurers, so you can avoid repeating yourself. We will report back with the most competitive premiums and comprehensive insurers.

  • To get a life insurance quote and to give insurers the information they need to assess the level of risk they will be accepting, our advisers will typically ask you the following questions:

    • Your age
    • Whether or not you smoke
    • Your height and weight i.e. Body Mass Index
    • How many units of alcohol do you drink in a week?
    • Have you ever experienced any mental health issues?
    • Do you undertake a lot of business travel overseas or mileage?
    • Whether or not you have used any form of recreational drugs in the last 5 to 10 years
    • Is there a family history of serious illness before the age of 65 years (parents and siblings)?
    • Do you take part in any hazardous pursuits? E.g. diving, rock climbing, sailing, motor racing?
    • Do you have a high-risk occupation? E.g. working at heights, in dangerous countries, at sea?
    • Whether or not you have any pre-existing medical conditions such as diabetes, high blood pressure or Arthritis
  • Comparing life insurance quotes may not be as simple as choosing the cheapest premium payments. Here are some things for you to consider:

    • What percentage of claims does the insurer pay out?
    • How comprehensive is the policy compared to others on offer?
    • What additional benefits does the insurer offer included in the premium?
    • Are there any conditions placed around the payment of terminal life insurance?
    • Is there anything important to know in the small print, which might affect a claim?

    A simple quote at the beginning will not consider your medical history. Once the insurer has assessed your application form and medical history, your premium may rise.

  • There is no right or wrong answer to how long you should get life insurance for. Some people, simply want enough protection to cover their mortgage, which may be 20-30 years. Some people prefer to have longer protection to ensure their dependents are always looked after.

    It is very much a personal decision. If you are unsure, you can speak to one of our advisers to discuss your options.

  • Although cheap life insurance may look attractive, it may not be worth it if you do not have the right cover. You may also come across very attractive insurance quotes only to find that the insurer raises your premium by the highest amount after assessing your medical history or lifestyle.

    An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed. Understanding which insurers are most sympathetic to your condition will save you time in searching and money.

  • Getting a quote online can be a quick way to get an idea of how much life cover could cost you. But a cheap online quote may not take into account the important information you will be asked for at the application stage. If you have a pre-existing medical condition, high-risk job or take part in any dangerous hobbies, a quote that a Future Proof adviser will take into account your circumstances and budget. It means that the price you are quoted will usually be much more accurate than a simple online process. A cheap quote online may seem attractive, but it may not be the price you eventually pay.

    At Future Proof our buying power and close relationships with Insurance underwriters means we can discuss any premium increases with them directly and find ways to minimise them where possible. Our advice comes with no obligation and no hidden costs.

  • According to the Association of British insurers 98% of life insurance claims were paid out in 2022. 

    Data provided in an ABI news release in Cover Magazine 30th May 2023. Quote provided from ABI .

     

  • Yes. There are many types of life insurance policies that cover different types of insurable interests, so you can have multiple life insurance policies at the same time.

    For example, you could have one life policy to cover each insurable interest below:

    • your mortgage
    • protect your family that covers their bills
    • cover a loan that will need to be repaid upon death
    • cover private school fees

     

  • During your life insurance application, you will be asked if the amount of insurance cover you are applying for, added to the amount you already have, across all insurance companies, exceeds:

    • £1,000,000 life cover or
    • £500,000 critical illness cover

    This question is to ensure that you are not over-insured. You must have good reasons for the amount you want to insure.

  • There are many different types of life insurance policy and forms of life protection. Each life insurance provider may take a different approach to an individual and their personal circumstances meaning life insurance policies are rarely the same. This is why it can be beneficial to speak with a knowledgeable insurance provider.

    Here are some examples where life insurance policies are different between insurers

    • Service – Insurers vary greatly from the ongoing service they provide to the percentage of claims paid.
    • Additional Benefits -Most insurers provide additional benefits which are included within the premium. These can vary greatly and may offer things like Private virtual GPs for your family, nutritional support, mental health support or the best doctors who will give a second opinion on diagnosis. Many of our clients agree that paying a little more to access these benefits are important to consider.
    • Terminal Illness cover – There are many factors that differ between insurers when it comes to terminal illness cover. The small print will determine when a claim can be made and when it won’t. It is important to know what your insurer offers.
  • Because each individual’s circumstances vary, there is no single insurance company that qualifies as being ‘the best’. The ‘best insurer’ is simply the company that provides the most comprehensive policy, with the most useful additional benefits at an affordable price for you.

    For more information, read our guide on best life insurance

  • You can cancel a life insurance policy at any time. You will not be charged a cancellation fee. If you are feeling the squeeze with income, in the current economic climate, help is at hand. There are things we can do to ease your financial worries and safely reduce your premiums without shifting the focus of your needs for the future.

    If you want to protect your loved ones, having some form of life cover is always better than having no cover.

    Find out more here. 

  • When you purchase a life insurance policy, you can choose who you want to receive the money from the policy when you die. This person or people is called the beneficiary. You can choose to put your policy in a legal document called a trust or in your will. If you do not do this, the rules of intestacy will decide who gets the money from your policy.

  • When you put your life insurance in a Trust, it ensures that the money from your life insurance policy is given to the people you want after you die. A Trust is a legal agreement where a person (called the settlor), gives ownership of their assets to another person called the Trustee.

    The Trustee is then responsible for managing and using those assets for the benefit of a third person, called the beneficiary. Placing your life insurance policy in Trust can be helpful for planning how your assets will be distributed after you die and can also prevent the legal process called probate, which is how a person’s assets are distributed after they die. The benefits of a life insurance Trust.

    Trusts are not regulated by the Financial Conduct Authority.

  • Although the overwhelming majority of life insurance claims are paid, around 2% of claims were declined by insurance providers according to the Association of British Insurers (2021).

    The reason for this is because of something called non-disclosure. 

    No-disclosure is where a critical piece of information was left out by the applicant at the time they submitted their application. For instance a serious medical condition which may have contributed to their death.

    When a life insurance claim is made, medical information about the death will be requested by the Insurer. If this enquiry reveals aspects of your medical conditions that you did not disclose to an insurer during your application which meant you have unfairly been paying lower premiums instead of higher ones, this will likely result in the claim being denied.

    If you want to ensure your life insurance claim is paid out in full, you should always be clear, honest, and open during your application.  It is important that you disclose all your medical information and past medical history.

    If you apply with Future Proof our advisers will complete the application with you over the telephone to ensure nothing is missed out.

We have access to software that compares different areas of quality across insurers,

including claims processing and additional benefit access,

giving you peace of mind that you have chosen knowledgeably.

How can Future Proof help me?

Women discussing life insurance

If you are looking to protect your family and loved ones and want to speak with a friendly team of award-winning life insurance experts, we are here to help. We have substantial experience and success helping people with medical issues and can often help people who have been unsuccessful elsewhere.

Future Proof can help you if you have:

  • a pre-existing medical condition
  • been declined cover by an insurer
  • been offered cover that does not include your hobby
  • had a medical condition ‘excluded’ from a policy
  • been offered cover that does not include your job or part of your job role
  • a policy that has been ‘loaded’ or ‘rated’ i.e. your premium increased by an insurer

Our award-winning, no-obligation service will continue for the life of your policy if we are the administrators of your policy.

Find what our more about our award winning service.

How to create a Trivia action