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To allow you to choose the best option for you we provide 3 routes to apply for cover...
Carry out a quotation online and you'll then be presented with a panel of Insurers. You will then be able to select an Insurer and continue to complete the application. If the Insurer does not need any further information (from your GP for example) then you will be able to start the policy immediately.
Once the policy has been confirmed you will then need to go back onto our site to pay our one-off fee of £25.00 (for fee based applications).
If you prefer not to pay a fee then we do also offer a no-fee option where the monthly premium is generally slightly more expensive and the Insurer will pay Cavendish Online a small amount of commission instead. This may be suitable for low premiums where the difference in price is minimal or could be an option if you think you may change the cover you have in the near future.
100%
of the commission that we receive
(for fee based applications) is
reinvested in your policy to provide our
lowest possible premiums.
If you prefer then you can call or request a call from one of our consultants. They will be able to guide you through the various options and help you decide the best policy for your needs. If you are not sure of exactly what you need then this could be a good option. No fee is payable so feel free to call for an initial chat.
If you did take out a policy through this route then we would receive commission from the Insurer but we do request a lower percentage of commission resulting in lower premiums for our customers.
(Monday to Friday, 9am to 6.30pm)
If you prefer then you can call or request a call from one of our advisers. They will be able to talk to you about the various products and options and help you find the exact policy suitable to your circumstances.
This route is recommended for people with medical disclosures or hazardous occupations or hobbies as our advisers will be able to find the most suitable and affordable policy that meets your specific requirements.
(Monday - Friday 9.00am to 5.30pm)
To put it simply, life insurance is a type of insurance product providing financial protection for your loved ones after you pass away.
Arranging life insurance can be a daunting prospect, but as you’re reading this, then it’s probably on your radar. Life insurance is a very important product which protects the people you hold closest. But, like other people, you haven’t yet got round to sorting out your own policy...
Is that because other, more exciting priorities have come up? Or because you aren’t sure how it all works, or because you think life insurance will be too expensive for you? Well, when looking at arranging your policy, it’s important that you do your homework and gain all the knowledge you need so you can live with peace of mind and continue to live the life you want to, without thinking, what if?
In the below guide, we will explain exactly what life insurance is, how it works, help you work out if you really need it, and why there may be no better time than now to finally sort out cover for you and your loved ones.
For more information please read:
When Should I Think About Getting Life Insurance?
Do I already have Life Insurance
How much Life Insurance do I need?
How does family life insurance work?
Life insurance for mortgages: things to know before buying
Life Insurance Frequently Asked Questions
Typically, a life insurance policy pays out a cash lump sum to your family in the event of your death. The amount your family receives is determined by how much cover you chose to take out. The type of policy you choose also affects how the policy pays out. For example, whole life insurance covers you permanently.
However, term life policies only cover you for a set period of time, known as the policy term. In this instance, your family will only receive a pay-out if you die within the policy term. If you outlive the term the policy expires, and you won't receive a return for premiums previously paid.
Once you take out a life insurance policy, you begin making monthly payments to your insurer, known as premiums. These premiums carry out until the end of your policy. If you become unable to fulfill these payments your insurer may end your policy early. In this case, you won't receive any compensation for the premiums paid up to this point.
The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.
If you are facing financial difficulty, please contact your insurer before cancelling your policy or letting it lapse. They may have options available to help you remain covered.
You have children: Life insurance can provide your children with financial support while they are growing up if they can’t count on your income.
Leaving a legacy: Life insurance is a good way of providing your loved ones with inheritance money when you pass away.
Your home: A payout from your life insurance can allow your family to pay off the mortgage after you pass, relieving them of a heavy financial burden.
Funeral costs: A life insurance payout can help out your loved ones with the funeral costs, providing them with a lump sum.
If we boil it down, there are really only two types of life insurance policies; “term insurance” and “whole-of-life”. Below is an easy to digest breakdown of the two:
Term insurance:
Term insurance is the most basic form of life insurance. With this policy, you’re able to choose the amount of cover you need and the period of time which you want to be insured.
Putting it candidly, if you pass within this term, this will pay out to your loved ones. However, if you survive the term (which we hope you do), then the policy will not pay out, nor will the premiums you paid, be returned to you.
It’s up to you to choose what term you want the cover for. Ultimately, the length of cover will affect the size of your premiums.
Whole-of-life: Life insurance
The clue is in the name of this policy. We all, unfortunately, die one day, so as this policy is ongoing, it will pay out whenever that day comes.
Naturally, these policies may be more expensive than term life insurance policies since so long as you keep paying your premiums this will always have to pay out, whereas you may outlive the term insurance policy.
As we have established, life insurance will payout to your loved ones if something bad were to happen to you. You should consider getting covered if you have a partner or children who would struggle to live without your income or who’s life would be hugely affected without you around. The payout of life insurance can really help your loved ones cover the costs of utility bills, the mortgage, and other financial burdens, such as school fees.
The main question to ask yourself is, would your family be able to live comfortably without your financial backing if the worst was to happen to you?
However, if you’re single and have no dependents, life insurance may not be the best way of covering yourself. There are other insurance policies which may be more beneficial for you, such as critical illness cover.
Level term - both the pay-out value and premium rate is fixed throughout the policy length.
Decreasing term (also known as mortgage life insurance) - typically taken out alongside large payments like a mortgage. The payout value of your policy decreases over time.
Increasing term - the payout increases over time to protect the value from inflation.
The amount of life insurance that you need really depends on your personal circumstances and what you’d like to provide to your family. Going back to the reasons why you may need life insurance, you can work out how much cover you need for this...
Leaving a legacy
Life insurance allows you to leave some money for your loved ones when you pass. Your family may struggle without your financial support, therefore you will be able to give them a helping hand with whatever financial burden they encounter.
Supporting your children
As your children grow up, there are a lot of fees that come with this; such as education fees, first cars, and other life circumstances that may incur a cost. Your payout can support these endeavors and ultimately help your children out throughout their life, even when you aren’t here.
Buying a new house/covering a mortgage
You may decide that, should you pass away, you would like your life insurance to pay off your mortgage, so that your partner isn’t left with a large debt that they may struggle to repay alone. This could prevent your family from having to seriously change their lifestyle or, even worse, lose their home.
Support with funeral expenses
We all know that funerals are becoming increasingly expensive, so you may also wish for your policy to cover the cost of your funeral. That way the cost won’t sit with your loved ones during an already upsetting and stressful time.
There really are no rules around what your life insurance payout can be used for and therefore how much insurance you need, it’s more a case of thinking about your personal situation. Of course, the more things you want to support your loved ones with, the larger the cover you will need.
Unfortunately, we’re unable to let you know which is the best and cheapest life insurance plan. Each person’s situation is different, and the type of cover they require will be different from what you need. The cost of your life insurance policy will ultimately depend on the one you choose to go with as well as other factors, such as health, lifestyle and sometimes family history.
By charging a one-off fee of £25, we ask all providers to rebate all the commission normally paid to a broker. This makes it possible to offer the lowest possible life insurance premiums in the UK. Learn more about our fees.
In terms of a monthly cost, as mentioned before, this varies based on your life situation, as well as the length of cover and type of cover you choose. With this being said, cover can start from just £5 per month.
Life insurance is a completely personal product, which can depend on...
Age
Health conditions (including medical history)
General lifestyle choices
How much cover you want
How long you want to be covered for
Just like any other type of insurance, the more likely you are to make a claim on your life insurance, the more expensive your premiums will be. This is why the whole-of-life policy is more expensive, as your family is guaranteed a payout. Whereas the younger and healthier you are, along with a greater life expectancy, the cheaper life insurance will be for you.
The last thing anyone wants is for their loved ones to struggle during the potentially difficult times ahead. So, if you’re considering life insurance, it’s best not to delay, simply because we don’t know what’s around the corner and sadly many of us look to buy life insurance when it’s too late.
Studies have shown that many people actually overestimate the cost of life insurance. You may be surprised to find that life insurance is actually less expensive than you think, and policies can be purchased for just £10 per month or even less!
If you're looking to take out cover for both you and your partner, you should consider joint life insurance. A joint policy provides cover for two people under a single policy and can often work out slightly cheaper than taking out separate policies.
Joint policies typically work on a first death basis in which the policy pays out after the first death of a policyholder. The coverage then ends meaning the surviving party would need to buy further cover if required.
Learn more in this article - how does joint life insurance work?
Although the pay-out from a life insurance policy is considered tax-free, it can still be liable under inheritance tax. Providing the value of your estate fulls under the inheritance tax threshold (£325,000 - for 22/23 tax year) the pay-out value will be protected from inheritance tax purposes.
However, if the value of your estate is above the IHT threshold, there is one way you can help to protect your policies pay-out amount. This can be done by writing your life insurance policy in trust. In this instance your policy - including the pay-out amount would belong to the trust and not your estate. This way your family can receive the full pay-out amount, voiding a bill for inheritance tax.
Learn more about writing your policy in trust.
Now we’ve hashed all the daunting details out and you’ve done your homework, it’s time for you to finally get yourself covered! Luckily for you, buying life insurance online can be done with just a few clicks!
At Cavendish Online, there are a couple different options to help you find the best policy for you. You can either get a quote yourself, which takes just a few minutes of your time; just complete this form here.
Or, if you want some human interaction, you can choose to speak with one of our specialists over the phone, who are extremely friendly and will be able to help you choose the best cover for you and your loved ones.
Call us on 01392 241 850 to reach one of our helpful consultants, and tick another task off of the ‘to-do’ list!
