Top 10 Most Googled Insurance Questions

We answer the Top 10 Insurance Questions In The UK

1. What is life insurance, and how does it work?

Life insurance is a financial contract where the policyholder pays regular premiums, and in exchange, the insurer agrees to pay a lump sum (the death benefit) to designated beneficiaries upon the policyholder's death. It provides financial protection to the insured's dependents, helping cover expenses and debts.

2. How much life insurance do I need?

Determining the appropriate coverage involves assessing your financial obligations, including outstanding debts, funeral expenses, and ongoing living expenses. Consider factors like your income, mortgage, and the financial needs of dependents, aiming for a coverage amount that adequately protects your loved ones.

3. What is income protection insurance, and do I need it?

Income protection insurance replaces a portion of your income if you're unable to work due to illness or injury. It's crucial for those dependent on their income and lacking other financial safety nets, providing a financial cushion during periods of incapacity.

4. What is critical illness insurance, and what does it cover?

Critical illness insurance pays out a lump sum if the policyholder is diagnosed with a specified critical illness. Covered conditions vary but often include major illnesses like cancer, heart attack, and stroke. The lump sum provides financial support during treatment and recovery.

5. Can I get life insurance if I have a pre-existing medical condition?

Yes, it's possible, but the terms may vary. Insurers may adjust premiums based on the condition's severity, and coverage could include exclusions related to the pre-existing condition.

6. How does income protection insurance payout work?

Income protection payouts typically begin after a waiting or 'deferred' period, during which the policyholder is unable to work due to illness or injury. Payments continue until the policyholder can return to work, reaches the policy's maximum term, or passes away.

7. What are the common exclusions in critical illness insurance policies?

Exclusions may include pre-existing conditions, non-disclosure of relevant information during the application, or certain illnesses not specified in the policy.

8. How much does life insurance cost per month?

The cost of life insurance depends on factors like age, health, coverage amount, term length, and type of policy. Younger, healthier individuals typically pay lower premiums.

9. What is the difference between life insurance and critical illness cover?

While life insurance pays out upon death, critical illness cover provides a lump sum upon the diagnosis of a specified critical illness. Both types of coverage serve different purposes in financial protection.

10. What factors affect the cost of life insurance?

Age, health, coverage amount, term length, and lifestyle choices like smoking can impact life insurance premiums. Riskier factors may result in higher costs.