Death is inevitable and is a subject most tend to avoid! If you have a young family or a mortgage, you should consider the implications of your death on them when you pass away?
Think about how they will repay debts, support themselves financially, and how will they pay for your funeral!
Having Life insurance payout will help to ease the burden on your loved ones by providing financial support on your death.
This will depend on the type of cover required and any other health conditions your may have in combination to the smoking.
Some people smoke cannabis occasionally, and others do this regularly. The insurer may also increase the premium if you have other health conditions and smoke cannabis. In the very worst case, they may decline cover altogether.
Our advisers will discuss your habits in detail and then source an insurer that may offer cover to you.
Some applications will ask if you used to smoke and how long ago you stopped, and you must answer this question correctly.
Insurers may request a medical test, and this will involve a cotinine test.
You must make sure that you declare your smoker status accurately as failure to do so could result in a claim being declined by the insurer.
You can contact the Unclaimed Assets Register for any unclaimed policies. You will be required to provide personal details and proof that you are the person in line for receiving the payout.
Short answer is no as their needs to be an employee/employer relationship. A Limited Companies Directors (salaried) and all employees are eligible to take out a 'Relevant' life plan.
If you currently have a fixed-rate or Tracker mortgage (not all), then Early Repayment (Redemption) Charges may be payable for paying off this mortgage early. This usually ranges between 1-5% of the total loan amount and will depend on the length of the fixed period, i.e. the longer the fixed period remaining, the higher the early repayment charges payable. Exact details of this can be found on your mortgage offer and/or annual mortgage statement.
When the fixed period ends, there are usually no Early Redemption Charges payable. A Mortgage Exit Fee (or Redemption Fee) may be payable to close the mortgage account. Your lender may also charge a nominal fee to cover the administration costs associated with closing the mortgage account down.
If you are on the lender's standard variable rate mortgage, then no Early Repayment Charges are payable.
Some of the reasons why you may need life cover are:
- Providing a replacement income for the surviving partner;
- Paying of an outstanding mortgage or loan
- Paying for school fees or any other education costs
- Paying for a funeral, or other costs and IHT liabilities
- Paying the costs of an aged parent or bringing up dependent children
- Providing financial support to an adult child, e.g. during their early working years
This in simple terms means that the insurer will pay your premiums if you cannot work due to injury or illness and this will give you one less worry at a challenging time of your life.
However, there are conditions which will be listed in your policy document and if you meet these conditions you will be eligible to use this option should you need it.
Depending on how long the Waiver of Premium period is, you must pay your premiums for that time and after that time your monthly premiums will be waived.
Many insurers will continue to waive premiums until you are fit to return to work, your policy ends in this time or if you do not fulfil the insurers definition of incapacity. With most policies you need to add this option at the start of your policy.
These both types of insurances are paid by the business. A Key Person’s Insurance benefits the business and A Relevant Life Plan is for the employee and their family’s benefit. Key Person is geared towards mitigating losses for a business.
Relevant Life protects against the death of an employee from relatives’ perspective by providing a tax-free cash lump sum to their family when they do pass away.
If you buy a term life policy it will pay the amount you have set within the duration you set.
For example, you might decide to set up a policy to pay £500,000 to your 75th birthday, so you would only pay monthly premiums to your 75th birthday and it would not cover you beyond this date.