Home / Frequently Asked Questions
1. Who can apply for cover?
If you live in the UK , Channel Islands or the Isle of Man and are aged between 18 and 69, you can.
2. How much cover should I get?
It depends on your own situation. Some things to take into account are: how would your financial dependants meet their bills without your financial contribution? Ensure that any mortgage that you are responsible for paying for is repaid upon death, then add up how much additional cover would be required to support your family. Click here for our 'Cover Calculator'
Try a few quotes and see what you can get for your money. This is not advice or a recommendation. If you need advice then please call our customer services team free on 0800 980 9801 from 8am to 9pm Monday to Friday, and from 9am to 3pm on Saturdays.
3. How long should I get cover for?
Most people usually take out their insurance until some key date in the future. It could be when they intend to retire, when their mortgage is paid off, or when they feel their children may leave home and support themselves. Work back from that date to now, and that will help you decide the number of years you need to be insured for.
4. Can I start my application now?
Yes, you can start you application online anytime which will in many cases mean the plan is in force within 24 hours. If you need cover “right now” then call free on 0800 980 9801 and we will be pleased to help.
5. Can I cover my mortgage?
Yes, we have level and reducing (mortgage protection) plans that can be set up to repay interest only and repayment mortgage types on death. You can also opt to include critical illness insurance and waiver of premium too.
Furthermore in most cases we can add insurance to help pay your mortgage during periods of long term sickness (which statistically is much more likely across the population) and if necessary unemployment insurance is available also.
6. Can we buy joint life policy?
Yes, joint life policies are available, but “advisers” will typically recommend two single life policies as they usually cost hardly any extra and will provide “double cover”, (this means that if both lives die together both policies pay out, rather than just one joint policy).
Having this “double cover” can provide very valuable extra cover which can help support surviving family members for hardly any extra cost.
Policies that include critical illness benefit would almost certainly be better split into two separate plans as if life 1 is diagnosed with say cancer, life 2 will not want their cover to be lost, which would be the case on a joint life, first claim policy.
7. How do I pay my premiums?
Monthly by direct debit is usual.
8. How do I make a claim?
If you have a living benefit (critical illness, income protection, waiver of premium or unemployment cover), then you should check the policy booklet for details about how to claim. If you need help then please call us on 01243 817917.
If you need to make a death claim on behalf of another, then please call us on 01243 817917, our team is highly efficient and very helpful.
9. Who gets the money?
You, if the benefit is a living benefit, and either your Trustees if the policy is in Trust, who are then responsible for carrying out the provisions of the Trust, or your Estate if you have not placed the policy in Trust.
If the policy is a joint life policy, not in Trust, then the proceeds are payable to the surviving owner of the policy, (the other life assured).
10. Will the proceeds be taxed?
Both terminal illness and life claims are usually paid free of personal liability to income and capital gains tax but in some circumstances inheritance tax may be payable. You can normally help avoid this by putting your plan under a suitable trust. Click here to visit our 'Trusts' section
11. Can I cancel the policy at any time?
Yes, but of course the cover will stop also.
12. Will my payments change?
Not normally. Good practice is normally to arrange policies with “guaranteed” premiums which whilst they might change during underwriting are fixed for the policy term once the plan goes into force.
Sometimes however plans with critical illness included are arranged on a “reviewable” basis as they provide significantly more cover at outset for a lower premium which might better suit the circumstances. Reviewable plans are clearly marked and normally the premiums are not reviewed up or down for the first fives years.
13. Do I get any money back if I don't die before the end of the term?
The policy provides life insurance (and/or critical illness insurance, income protection insurance, unemployment cover), only and there's no cash-in value.
13 July 2007 15:52:19
A new IT programme is leading the way for the UK life insurance market to move into the digital age.
Sixty per cent of claims made to Lloyd's of London will be processed electronically by the end of September, with plans for widespread electronic processing by 2008.
The new electronic claims files (ECF) system will make drastically speed up the claims process, Lloyd's has claimed.
Andy Brooks, head of Lloyd's market reform programme, said that the ECF initiative will prove crucial to increasing the efficiency of the London insurance market.
"It marks the beginning of the end of the huge piles of paper you see brokers carrying each day," he said.
Steven Haasz, director of business process and change management at Lloyd's, agreed that going electronic was a step in the right direction.
"This electronic filing cabinet will remove a significant amount of paper from the system and streamline the whole process," he commented.
"It is a significant step towards a truly modern market."
13 April 2007 16:24:44
Those who opt against taking out critical illness cover are at higher risk of suffering a stroke, according to new research.
The findings are as a result of a study by US scientists reported in the Journal of General Internal Medicine, which claims that people without health insurance are more likely to skip regular check ups.
This means that the early signs of an impending problem, such as diabetes, high blood pressure or high cholesterol levels, all potential triggers for cardiovascular disease, could be missed.
"Hypertension is the most powerful risk factor for stroke, and in our study we found that hypertension was significantly less likely to be well controlled in those lacking insurance," said lead author Angela Fowler-Brown, from the Beth Israel Deaconess Medical Center.
"We believe that our findings underscore the great importance of medical insurance in maintaining the health of the population."
White males were found to be most likely to lack insurance.
18 July 2007 12:52:09
The life insurance industry could be set for big changes, as a new boss seeks to leave his mark.
Andrew Moss, recently installed as the new chief executive of Aviva, is reportedly mulling over ditching the company's Norwich Union brand.
Mr Moss was promoted in January from his role as Aviva's group finance director after CEO Richard Harvey announced that he would retire on July 10th.
And the insurance world is awash with rumours that Mr Moss will aim to strengthen Aviva's global position by ending the Norwich Union brand.
However, one industry insider said that any changes would be carefully considered:
"They are not going to commit commercial suicide if they think dropping Norwich Union is going to harm the business. Changing any brand is a lengthy process and it would be years rather than months.
"They are highly cognisant of the value and historical strength there is in the Norwich Union brand."
Mr Moss has already made some big changes, restructuring Aviva into four international divisions; North America, Asia Pacific, UK and Europe.
