Life Insurance FAQs
Here are the answers to life insurance questions we regularly get asked by our clients.
If you have a question that is not covered here, or elsewhere on our website, please feel free to get in touch with us.
- Do I get any cash back at the end of my policy if I live it out?
- How long does the process take from start to finish?
- Am I covered while the policy is being processed?
- What are guaranteed and renewable premiums?
- Why are your premiums lower than my bank or building society?
- If I am diagnosed with a medical problem after my policy has started, do I have to declare that?
- Do I get any cash back at the end of my policy if I live it out?
- No you don’t with Term Assurance. This aims to pay out a lump sum of money if you die within the term of the policy. There is no payout if you do not die or if you die just a day after the policy has finished. As a result this is the cheapest form of life assurance available.
- How long does the application process take from start to finish?
- We can get you covered in as little as 20 minutes, but the average application takes 20 days to process and sometimes even longer. This is because of something called “underwriting”, where the insurance company assesses the risk you pose and decides whether to offer you cover on standard rates, at a higher than standard premium or refuse to cover you at all.
If you have existing medical conditions then the insurance company may want confirmation of your medical history from your GP (a “GP’s Report”) and this can take many weeks to get.
We recommend you start the application process as early as you can… once we have got agreement to cover you we can then hold the cover with the aim of starting when you are ready.
- Am I covered while the policy is being processed?
- This varies depending on the circumstances. Most insurance companies provide limited interim cover whilst they are processing your application if your application is linked to a mortgage. There is no substitute for the real thing though so it is best to start the application process as early as you can.
- Guaranteed premiums mean that the price you pay will not change during the term of the policy, so if it starts at £35 per month it will always be £35 per month. Reviewable premiums are the opposite, your premiums are generally reviewed every 5 years and give the insurance company the opportunity to increase your premiums if, for example, they have suffered from higher than expected claims. However your plan will not be re-underwritten so any changes in your health will NOT affect your premium.
- Why are your premiums lower than my bank or building society?
- Well, first of all make sure you are comparing like with like. Once you are happy that both plans are the same then any difference in premiums is down to the fact that banks and building societies usually charge more for the same level of cover when compared to a broker. This may be because they tend not to search the whole market. Instead they tend to sell their own policies, or those of just one insurance company and then rely on consumer lethargy / misplaced trust to be able to sell overpriced policies.
- If I am diagnosed with a medical problem after my policy has started, do I have to declare that?
- No, you are only obliged to disclose details of medical conditions that existed at the point you made the application and up to the date the policy actually starts (goes “on risk”). Once the policy has officially commenced any changes to your health are irrelevant and do not have to be disclosed. However you must disclose any changes to your health that occur between the date you make your application and the date cover commences.