What is Life Insurance?
You want to be sure your family will be looked after when you’re no longer around. Life Insurance lets you make that happen. Life cover.
Also known as Life Cover these policies pay out a lump sum of cash upon your death.
You choose the amount that your policy pays out, as well as the length of time you’re covered for, putting you in control of the premiums you pay.
Why do I need Life Insurance?
Life Insurance helps give everyone peace of mind by cushioning the financial impact of tragedy. If you have people who rely on you for their day-to-day lifestyle, their standard of living could be in jeopardy if you were no longer here.
Dependants like your children or spouse could use the payout to cover the costs of day-to-day living, education, rent, or just carrying on with life.
Joint debts could also be cleared to relieve the burden on your surviving co-signatory.
10 year term life
The costs of your funeral could also be covered, so your loved ones aren’t out of pocket.
Discover how your nearest and dearest could benefit from low-cost Life Insurance.
What affects the cost of Life Insurance?
We make it simple to get covered, but there’s a lot going on behind the scenes. The cost of Life Insurance cover is calculated using different health and lifestyle factors, which combine to make sure you’re paying premiums on a policy that’s right for you.
How much cover do you need?
This one’s nice and easy, the bigger the payout on your policy, the higher your premiums will be.
It’s important to work out exactly what living costs you would need to cover if you were to pass away and avoid paying over the odds for your policy. This could include your mortgage, dependents, debts and income. Don’t forget to take into consideration future life milestones like settling down or having children, where the cover could offer your loved ones a safety net if you died. Take a look at our guide to the circumstances and costs you could consider when deciding how much cover you need.
How long do you want Life Insurance for?
Longer policies are likely to carry higher premiums, since these increase the risk of you dying while still covered.
Again, think about what your cover is protecting and might protect in future. If you want to secure your children’s education, a policy that runs for 20 years could achieve this while they come of age. Anything longer and you could be paying too much.
If you die during the policy term, who the payout goes to depends on the arrangements you’ve made for after your death.
If you’ve taken out a joint policy with your partner through Beagle Street, the lump sum will be paid to them and the policy ends.
If you have a Will, the lump sum forms part of your estate and is paid to the executor to distribute as you’ve stipulated in your Will.
State farm life insurance
If you don’t have a Will, the lump sum will be subject to the rules of intestacy. This is a complicated process where the law decides who will inherit a deceased person’s estate (including a Life Insurance payout).
If you’ve written your Life Insurance policy in trust, the lump sum is paid to the trustees to distribute to the beneficiaries of the trust.
It’s important that you set up your wishes for after your death in advance, and check that they’re correct, as Beagle Street is not responsible for issues or disputes arising from payouts.