Life Insurance FAQs

Frequently asked questions about Life Insurance

We’ve put together a list of the most frequently asked questions that people have about life insurance. If you have further questions, please get in touch to speak with one of our advisers.
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I have Life Insurance as part of my employee benefits package so why would I pay for more?

Employer-provided life insurance is a valuable benefit, but it’s essential to evaluate your individual needs, assess the limitations of the group policy, and consider purchasing additional coverage through an individual life insurance policy to ensure comprehensive financial protection for yourself and your loved ones.

If you leave your job for any reason, such as changing employers or retiring, you may lose access to your employee life insurance benefits. If these benefits are not offered by your new employer, you will find that purchasing your own policy will be more expensive now because you are older.

In the worst-case scenario if your employment is terminated through ill health, you would be unlikely to find any insurer willing to cover your pre-existing medical issues.

Purchasing your own life insurance policy ensures that you have continuous coverage regardless of changes in employment status

Why should I use a Life Insurance broker like Clark and Poole rather than arranging my Life Insurance directly with a bank or Life Insurance provider?
Independent advisers like Clark and Poole are not tied to any bank or insurance provider and will look for the best insurance product on the market for you. You receive unbiased advice and can choose from a range of providers and products, rather than being restricted to the single range of the bank or insurance provider you might go to.
Why should I use Clark and Poole to arrange my Life Insurance?

Obviously, we’re going to say you should use us to arrange your life insurance, but we do have good reasons – we have been helping people arrange their policies for years, we act solely in your interest and give totally impartial advice, and we can work with you to get the right product to suit your unique personal circumstances. Our advisers explain things in plain and simple language to help you understand your options and to make an informed decision. We also complete the application process on your behalf.

We have an experienced and friendly team who are always available by phone or email to answer any questions. If you would like to find out more about our team, please take a look here

Why would I use a Life Insurance broker like Clark and Poole rather than a comparison site to find the best Life Insurance deal?
Basic search engines can be useful for completing some initial self-research, but they can never be as sophisticated as the specialist whole of market software used by us.

An ‘off-the-shelf’ policy will not be tailored to your unique circumstances and sadly we find that the cheaper policies contain hidden exclusions which can mean that the policy won’t be valid upon a claim.

We work directly with you to understand your financial goals and needs and can tailor our recommendations to your specific situation. We work with a variety of providers, which gives you access to a wider range of policies than you might find on your own.

What is the difference between Life Insurance and Critical Illness Cover?
Life insurance and critical illness cover are both types of insurance policies designed to provide financial protection, but they serve different purposes and cover different risks.

Life insurance covers the risk of death and pays out upon the death of the policyholder, whereas critical illness cover covers specific serious illnesses or medical conditions, as defined in the policy, and pays out upon diagnosis of a covered critical illness during the policy term.

What is Life Insurance?
Life insurance provides a financial safety net for your loved ones in the event of your death. It pays out a lump sum of money, or monthly benefit, to your beneficiaries upon your passing. This could be used to pay off debts such as a mortgage, or to provide financial support due to the loss of your income.
What is Critical Illness Cover?
Critical illness cover provides financial protection if you are diagnosed with a serious illness or medical condition covered by the policy. It covers specific critical illnesses or medical conditions listed in the policy, such as cancer, heart attack, stroke, organ transplant, etc. The payout can help cover medical expenses, ongoing treatment costs, lifestyle changes, or other financial needs during the illness. It is entirely your choice how to use the funds. It should allow you time to recover, time to make plans if your illness has long-term consequences, and time to spend with your loved ones if your illness is terminal.
What is Children’s Critical Illness Cover?
Children’s critical illness cover can be included in an adult’s critical illness plan (and sometimes as an add on to an adult’s life insurance policy). This will provide you with a lump sum should your child be diagnosed with a critical condition, up to a set age. This is to help alleviate some of the financial pressures of dealing with your child’s critical illness, which might mean you need to take time out of work or pay for support at home.
What is Income Protection?
Income protection insurance is a type of insurance policy that provides financial protection if you are unable to work due to illness, injury, or disability. It replaces a portion of your income during the period of incapacity, ensuring you continue to receive a regular income stream to cover living expenses and financial obligations. It is recommended that you take enough protection to cover your share of monthly expenditure, including the mortgage.

If you are employed, the deferment period can usually tie in with your employee benefits so that it kicks in when they stop. It’s important to review your income protection if you change jobs.

What is Terminal Illness Cover?
Terminal illness cover is usually included in most life insurance or critical illness cover plans at no additional cost. If you are diagnosed with a terminal illness, usually meaning that you are expected to live for less than 12 months, the provider will make the payment to you straight away.
What is Redundancy/Unemployment Cover?
Redundancy cover, also known as redundancy insurance or unemployment insurance, is a type of insurance policy that provides financial protection you if you become involuntarily unemployed due to redundancy.

Due to the cost and restrictive nature of the plans, they are generally only suitable for people in niche occupations who would find it difficult to find a new job quickly if they were to be made redundant. For most people, we would instead recommend that you try to have sufficient savings for emergencies that could cover your living costs for a period of time in case you were to lose your job.

Are there specific policies for Business Owners?
There are several products such as Key Man Insurance and Relevant Life policies that are designed for Limited Company owners and their employees. Some of these can be allowable business expenses.
Do I have to have Life Insurance?
The quick answer to this is no. There are some types of insurance that you are legally required to have, the most obvious of which is motor insurance, but life insurance isn’t one of them. However, while you may not ‘have to’ have life insurance, it is something you should consider carefully.

If you have dependents who rely on your income to maintain their standard of living, such as a spouse, children, or aging parents, life insurance can provide financial support to them in the event of your death. It can help replace lost income, cover daily expenses, pay off debts, and fund future financial needs like education or mortgage payments.

If you have outstanding debts such as a mortgage, car loan, student loans, or credit card debt, life insurance can ensure that your debts are covered and do not become a burden on your loved ones if you pass away unexpectedly.

Do I have to arrange Life Insurance when I take out a mortgage?
The quick answer to this is no, HOWEVER, purchasing a home often involves taking on a significant mortgage debt and if you pass away and do not have life insurance to cover your mortgage debt there may be a few issues. We therefore strongly advise that you do so if financially possible.

If you purchased the house jointly with another person (e.g., spouse, partner) who is also listed on the mortgage that person becomes responsible for the mortgage payments. Life insurance can help ensure that your family can continue making mortgage payments and stay in their home.

If you pass away with outstanding mortgage debt and do not have a surviving co-borrower, the mortgage lender will typically look to your estate to settle the debt and if there are not enough assets in your estate to cover the mortgage debt, the lender may initiate foreclosure proceedings to recover the outstanding balance.

Should I review my Life Insurance if I remortgage?
If you have increased or reduced your borrowing, then the simple answer is yes as you want to ensure that you have enough life insurance to cover your mortgage debt.
Can I have Life Insurance if I don’t have a mortgage?
The simple answer is yes. A mortgage is not necessarily the only financial obligation in life that needs protecting. You should consider all aspects of your finances, whether you have a mortgage or not, to ensure that your debts are covered and do not become a burden on your loved ones if you pass away unexpectedly.

If you have dependents who rely on your income to maintain their standard of living, such as a spouse, children, or aging parents, life insurance can provide financial support to them in the event of your death. It can help replace lost income, cover daily expenses, pay off debts, and fund future financial needs like education.

It’s essential to assess your individual financial situation, consider your long-term financial goals, and evaluate your need for life insurance based on your unique circumstances. Consulting with a life insurance broker like Clark and Poole can also help you determine the appropriate type and amount of life insurance coverage that aligns with your financial objectives.

When should I take out Life Insurance?

This depends on your individual circumstances, financial responsibilities, and goals. There are common life events or situations when it’s often advisable to consider purchasing life insurance such as:

  • Purchasing a home, which often involves taking on a significant mortgage debt. Life insurance can help ensure that your family can continue making mortgage payments and stay in their home if you pass away unexpectedly.
  • When you marry or enter into a domestic partnership, as your financial responsibilities may increase, especially if you and your partner share joint financial obligations like a mortgage, car loans, or other debts. Life insurance can help provide financial protection for your spouse or partner in the event of your death.
  • If you’re planning to have children or have already started a family, life insurance becomes particularly important. The death benefit from a life insurance policy can help ensure that your children and partner have financial support to cover such things as living expenses, childcare costs, and education expenses.
What is the best age to take out Life Insurance?
Generally, the younger you are, the cheaper the premiums. Purchasing a life insurance policy when you’re young and healthy will result in lower premiums compared to waiting until later in life.
Are there different types of Life Insurance?
Yes, there are different types of life insurance policies, each designed to meet different needs and preferences, so it’s essential to assess your individual needs, risk tolerance, and financial goals when choosing the most suitable type of life insurance for you. Choosing and applying for life insurance can be a confusing process and our advisers can help you navigate your options and make an informed decision.
I’ve had medical problems in the past – will this prevent me getting Life Insurance?
Previous medical problems may well have an impact on what cover you can get and at what cost, but it is certainly something we can research further for you. Life insurance companies will typically charge higher premiums to people with certain illnesses or conditions, but how much they charge and for what can vary considerably, so it is always worth making sure you are with the right insurer for you. As experienced life insurance brokers, we are aware of which companies will be more willing to cover pre-existing conditions and this is absolutely where we can add with our expertise.
How easy is it to apply for Life Insurance?
We believe that taking out life insurance should be as painless as possible, so we aim to do the leg work for you. We’ll ask you to complete a health and lifestyle questionnaire and then compare life insurance policies from a range of insurers to give you some quotes. We ensure that you are covered to the level you require and check that there are no hidden exclusions. When you have decided that you are happy with our recommendation, we complete the application on your behalf.
Do I need to meet with you in person?
We enjoy meeting our customers but if this is not convenient for you our advisors will be more than happy to deal with you on the phone and via email, whichever suits you.
Are you ‘Whole of Market’ and independent advisors?
Yes, Clark and Poole is an independent company, not tied to any bank or insurance provider and are therefore able to provide unbiased advice on life insurance products from the whole market, offering a much wider choice.
How are you paid? Why don’t you charge a fee?
We are paid a commission by the insurance companies that provide the life insurance products you purchase – for undertaking the administration on their behalf.
Are you regulated by the Financial Conduct Authority?
Yes. We are regulated and authorised by the FCA for your complete protection. We are entered on the FCA register under reference 498775.

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We have been helping people arrange their life insurance for years; we are very lucky to receive many lovely cards and reviews, and we are thrilled that many of our customers recommend us to their friends and family.
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{Andy provided a package that followed my requirements precisely. He kept me informed on progress at all stages and replies to questions were handled quickly and in detail.
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{Thank you so much for all your incredible work on this, I know it hasn't been easy. We really appreciate everything you've done to make this possible.
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Get in touch

If you have any questions or would like to have a chat then please get in touch with us. There is no obligation to act on our advice and we will be delighted to help, even if you won’t need our services for another year or two.

Please give us a call on 0118 4028971