Life Insurance Advice

deVere Group specialise in providing life insurance advice for our clientele.

Life insurance is arguably the first and most important part of robust financial planning. As part of conducting a financial health check, our financial planning team will help you highlight how much coverage you require and search the market to provide the best option.

On this page, we look at what life insurance is, who is eligible for life insurance, the benefits and types of life insurance and the set-up process.

If you would like to set up life insurance, please click on this link to arrange a quote.

What is life insurance?

The fragility of human life requires that we take every available opportunity to ensure that our loved ones and dependents are secure in the event of our death. Life insurance ensures that your family or loved ones are financially protected should the worst occur.

A life insurance policy will pay out either a lump sum or regular instalments that can be used by your named beneficiaries to maintain their living standards or pay off debts and long-term liabilities like mortgages.

Can you get life insurance if you have pre-existing conditions?

Individuals with pre-existing conditions are eligible for life insurance but may be required to pay higher premiums to justify the increased risk of death. As a result, the amount you pay for your life insurance policy will vary depending on personal circumstances.

With the chaotic nature of life and the quickly rising cost of living, life insurance may be more vital now than ever.

Benefits of Life Insurance

Given the rapidly rising cost of living, cost-cutting is an essential activity for the budgets of many ordinary people. As a result, the need to justify expenses is greater than it has ever been in modern times. Let’s take a look at five key benefits of life insurance and why it is in your interest to set up a policy today.

Security: As we alluded to above, life insurance is capable of providing your loved ones with the financial security they deserve if you were to pass away. The policy can pay out a lump sum or regular income to your beneficiaries. This income can then be used to help cover expenses such as funeral costs, mortgage payments, or educational expenses.

Debt: Most of us, at one time or another, have incurred debts. These debts may be in the form of mortgages, business loans, credit cards, or car loans. If you have outstanding debts, a life insurance policy can ensure that your loved ones can pay off those debts. With sufficient life insurance, your family will not need to worry about paying off debts.

Business Continuity: Entrepreneurship has increased dramatically over the last ten years. If you own a business, a robust life insurance policy can help protect your business continues by providing the necessary capital to allow it to operate even after your death. The policy can be used to provide the capital to cover expenses or pay off any business debts, so your business can continue running smoothly.

Estate Planning: Although often not considered, life insurance can be a useful tool for estate planning. With life insurance, you can cover any outstanding estate taxes and provide liquidity to your estate, making it easier to distribute assets to your beneficiaries.

Peace of mind: Peach of mind is one of the cliche benefits behind any insurance policy. However, knowing that your loved ones will be financially secure if you were to pass away is a benefit many prospective policyholders underestimate. This peace of mind will allow you to focus on other important aspects of your life, such as building your career or spending time with your family, in the knowledge that if the worst were to happen, the ones you loved most would be taken care of.

How Does Life Insurance Work?

The policy is relatively simple; policyholders are required to select the duration of the policy, i.e. how long they would like to be covered for, the amount of coverage they wish to have, and the names of any beneficiaries. In the event of your death, the policy will pay out your policy following the agreed-upon terms.

What’s Covered?

Death Benefit: As mentioned above, the main coverage of the policy will be the death benefit that is provided by the life insurance policy. It’s usually paid to the beneficiary tax-free, as either a one-time lump sum or a series of payments. You will be able to specify your preferences in this regard at the time of securing your policy.

Terminal Illness Benefit: Some life insurance policies are also capable of offering coverage for terminal illnesses, this is known as critical illness insurance. This coverage allows the policyholder to receive a portion of the death benefit if they’re diagnosed with a terminal illness and have less than 12 months to live. The ability to receive a portion of your death benefit before your death provides you with greater control over how the life insurance money is spent and divided among your beneficiaries.

Accidental Death Benefit: Some policies offer additional coverage for accidental deaths. which means the beneficiary can receive an additional payout if the insured person dies as a result of an accident. Accidental death is defined as a death that occurs unexpectedly, without intention or planning and is caused by external factors. These deaths can include car accidents, falls, drowning, fire, poisoning, and other circumstances that fall within the definition of accidental death.

Optional Riders: Policyholders can add optional riders to their life insurance policy to enhance their coverage. For example, a rider may provide coverage for long-term care, disability, or critical illness. We will explore critical illness insurance in more depth below.

What’s Not Covered?

Naturally, there are limits on what any insurance policy can cover. As a result, we have provided a summary of circumstances where your death may not be covered by a life insurance policy.

Suicide: If the insured person commits suicide within a specified period after the policy is purchased, the policy may refuse to pay out the death benefit. The specifics of suicide payouts, including the specified period, will depend on each policy.

Misrepresentation or Fraud: If the policyholder secured the policy by providing false information or failed to provide critical details that they could have been reasonably expected to provide on their application for life insurance, the policy may be voided, and the death benefit may not be paid out.

Participating in High-Risk Activities: If the insured person dies as a result of participating in a high-risk activity such as skydiving or bungee jumping, the policy may not pay out the death benefit. The definition of a high-risk activity may be included in your policy.

War or Acts of Terrorism:If the insured person dies as a result of war or an act of terrorism, the policy may not pay out the death benefit.

How Much Life Insurance Can You Get?

Contrary to what many may believe, you are not able to get an unlimited amount of life insurance. Here are several factors that will influence how much life insurance you can get:

Age:

Health:

Income:

Occupation:

Family history:

Desired coverage amount:

Types of Life Insurance

Various types of life insurance exist to cater to several situations. Here is a breakdown of the most common types of life insurance available on the market.

Term life insurance: This type of policy provides coverage for a specified period. This period can range from 1 to 30 years. If the policyholder dies within the term, the beneficiaries receive a death benefit payout. Term life insurance is one of the most common types due to its simplicity and affordability.

Whole life insurance: This type of policy provides coverage for the entire lifetime of the insured and typically has a cash value component. The premiums on this type of life insurance are higher but remain level throughout the policy’s lifetime.

Universal life insurance: This type of policy also provides coverage for the lifetime of the policyholder and includes a cash value component. The policyholder can adjust the premium and death benefit amounts over time, allowing for more flexibility.

Variable life insurance: Variable life insurance provides coverage for the lifetime of the insured and also includes a cash value component. Unlike other types of life insurance, the policyholder can invest the cash value portion in a range of investment options.

Group life insurance: This type of policy is typically offered through an employer or organization and provides coverage for a group of people.

It’s important to carefully consider your insurance needs and speak with a qualified insurance professional to determine which type of life insurance policy is best for you.