Life Assurance with Advice
Who are Proadvice?
Here at Proadvice our aim is to offer a highly professional service with our team of experienced protection specialists and customer support. Proadvice guarantee to offer you great customer service, quality advice and access to affordable insurance.
We offer you quotes from the whole of the insurance market with full impartial advice on the best products and with plans designed to suit you. With the Proadvice price guarantee we promise we will not be beaten.
The wealth of experience Proadvice specialist advisers possess, enables them to explain and recommend the right products for you and therefore avoid any disappointment in not having the correct policy in place should the need for you or your family to claim did arise.
We at Proadvice make it our job to understand all of the policies available inside out and understand the small print, so we can advise you and give you complete peace of mind that you and your family will be protected by your policy.
When buying insurance it is essential to find the right insurance company based on your health, hobbies, and your lifestyle as this could have a major effect on the final premium you will pay.
It is our job at Proadvice to find you an insurance policy with the appropriate insurance provider with the very best cover available to you, based on your individual circumstances. Proadvice will also guarantee to find you the most competitive rates in the marketplace today.
Here at Proadvice, we will not charge you a fee for the services we provide and can assist you on all elements of your personal protection from life insurance to critical illness cover to your income protection needs.
Our sole aim at Proadvice is to advise and recommend the best polices available to you so that you have protection in place, should the worst happen. People come to Proadvice to ensure that when they take out a protection plan, they are going to be adequately covered. We at Proadvice have many years of experience in reading the small print detailed on insurance policies, in fact we love the small print. It is one of the elements that make Proadvice stand out from the crowd. Proadvice will advise you of the plans most suited to your individual circumstances and let you know exactly what you are covered for and maybe even more importantly, what you are not covered for. This way you can have complete peace of mind before you take out the plan. The protection industry is an industry that wants to help people at their time of need, they want to pay! Last year was a big year for pay-outs to clients, although it is extremely important to know how to set your plan up correctly and this is where Proadvice can help.
Proadvice are aware that there may be more interesting and appealing things you can be doing rather than trawling through various insurance cover information however we also know that you would not want to leave yourself or your loved ones in a difficult situation if you were to pass away unexpectedly. Proadvice know how important it is to get it right. The insurance and financial industry is not known for simplicity and can often have lengthy and difficult to understand literature.
We at Proadvice will be more than happy to assist with all of this.
Life Insurance - Without Advice
When taking out a life insurance policy, critical illness cover and income protection, it can seem like a minefield and you may be unsure which way to turn. The majority of people will seek advice and guidance from an adviser who can recommended a plan, tailor made for your circumstances. The other option available is to do it yourself and hope that you have made the right decision and selected the right plan and that it is set up correctly. In 2005, the Financial Services Authority (FSA) made buying insurance much more straightforward and easier to understand. Life insurance can be sold with no advice or guidance given whatsoever and literally just offer people quotes for insurance. With no advice you are on your own, all the broker will do is give you the means to set up your plan. If your plan is taken without advice and the plan ends up with you owing inheritance tax or does not pay out because your hobby or job has had exclusions placed on your policy that you were unaware of, the buck stops with you.
When taking out an insurance policy with advice, all of the small print and clauses will be highlighted to you and explained to you in detail in a ‘jargon free’ way. Your adviser can also make recommendations to you and give you guidance as to what types of plans are most suited to your individual circumstances. An insurance policy that is taken with advice also gives you complete protection through the Financial Conduct Authority, Financial Services Compensation Scheme and Data Protection Act 1988. This can give you the confidence that the policy you have is correct and that you are going to be looked after.
How much Life Cover should I have?
There is a good chance that the reason you are on this website is that you know how important protection insurance is. You have understood the benefits of continuing to provide an income for yourself and your family in situations where you are no longer able to do so.
What you may be struggling with is how much life insurance is sufficient and what amount you should request as your sum assured. How can you put a value on your life or worth to your family?
While it is clear that your loved ones would rather you are here to support them than to claim on your life cover, knowing your family will be looked in the event that something did happen to you will bring you peace of mind.
Everyone is different and therefore everyone’s life insurance needs are going to be different. If you are married and have three young children and a mortgage, you are probably going to need more insurance than if you are single, with no children and are renting your property.
Individual Life Cover
If you are looking to take out life cover with a partner, you are still able to take out an individual life plan if you did not want to enter into a joint life insurance policy. With the individual life policies, you are both able to choose different amounts to suit your personal circumstances such as medical history or occupation.
For example, Mr Smith’s life insurance cover, in his current situation will for a sum assured of £100,000 cost Mr Smith £10 per month and his wife Mrs Smith’s life cover, in her current situation will also cost £10 per month for £100,000 worth of cover. As Mr Smith suffers from uncontrolled high blood pressure, on application for the life insurance policy, underwriting has decided to increase his premium as he is a higher risk than someone without high blood pressure. When a premium is increased due to the client being a higher risk based on disclosures, such as previous medical conditions or taking part in what is deemed as a dangerous hobby, this is referred to in the insurance industry as ‘loading.’ On this basis due to Mr Smith having uncontrolled high blood pressure, Mr Smith's life cover is going to double to £20 per month. Unfortunately, the Smith’s can only afford £20 per month between them.
In many cases, Mr Smith might decide not to have any cover at all if it is unaffordable to him. If the Smiths were applying for a joint plan, then neither of them would then have any cover.
One solution to the Smith’s problem is that Mr Smith can reduce the sum assured on his life cover to £50,000, rather than the original £100,00 cover he had requested. This is only going to cost Mr Smith in this instance, £5 a month. Now when Mr Smith applies for his policy and underwriting decide to ‘load’ his policy, the premium increases to £10 so is therefore still affordable to Mr Smith and the Smiths do not go over their budget. Mrs Smith is able to keep her cover with a sum assured of £100,000 and pay her premium of £10 per month.
Another advantage of two single plans over a joint policy is that with you both having your individual plans, you can both select your own beneficiaries.
Mr Smith and Mrs Smith are married and have three children between them they decide to take out life cover for their children. Mr Smith also has a child from a previous relationship and wants to make sure his child is looked after as well as his three children with Mrs Smith.
Mrs Smith does not like the idea of Mr Smith’s child from his previous relationship benefiting from her death. This would be the case if the Smiths were to have a joint plan.
By taking out two single insurance policies Mrs Smith can ensure that only the three children she has with Mr Smith benefit from her estate if she was to pass away during the term of her policy.
If Mr Smith were to die during the term of his policy then all four of Mr Smith’s children would get 25% each. Both parents are happy and can ensure their children are looked after without causing any complications.
(Please note that the costs and sums assured in the examples are hypothetical and for illustrational purposes only.)
Joint Life Second Death
There is an option to take out a joint life, second death plan. This is usually a whole of life plan and is taken out to cover a potential tax bill on the estate when the second person on the insurance plan passes away. There are a number of other uses of this plan depending on your circumstances. Proadvice can advise you on these, if required.
As it states in the name of the plan, a joint life, second death plan is a joint policy and will only pay out only when the second person of the couple named on the policy passes away. The joint life, second death plan is usually the more cost effective option when compared to opting for a joint life, first death plan.
How does Critical Illness Cover work?
A critical illness policy works on the basis that the insurance company will pay out a lump sum to you on diagnosis of a specified critical illness. No plan is identical and the number of conditions that are covered differ from one insurance company to the next. The insurance companies will however, cover all serious illnesses, such as cancer, heart attack and a stroke but you do need to be aware that the conditions of these illnesses and how they are defined do vary from company to company.
If you are diagnosed with a critical illness the pay-out can be used as a sensible option to clear your mortgage which will probably mean that your biggest bill every month has been abolished. The money could allow you to take a year off work to recover from your critical illness and enable you to go back when you feel fit and healthy and not when you are forced into it as the bills are mounting up. The critical illness cover can alleviate some of the pressure on you so that you can focus on getting better and making a recovery.
With critical illness cover, should the need to claim arise you can do whatever you wish with your pay-out and that is the point of critical illness cover. Critical illness cover gives you options when you may have thought you had none. A critical illness policy can allow you to have complete peace of mind and alleviate some of the financial pressures.
It is recommended that you speak to a Proadvice adviser to find out what illnesses you are covered for as every insurance provider varies and will cover a range different illnesses. You may not have time to study a twenty paged Key Feature Document that the insurance company will provide you with on application of the policy, study its small print and then compare it to all the other critical illness policies available on the insurance market. Proadvice can help you with all of this and it is our job to do so. A Proadvice adviser will help you to make the correct decision and select the right plan for you.
Do I need Critical Illness Cover?
With the medical advancements in today’s society, the chances of surviving a critical illness are better than ever before. In fact, illnesses such as some forms cancer, heart attack and strokes are no longer necessarily a death penalty whereas years ago the chances of survival with such an illness would have been slim. As a direct result of the medical advancements, people today are surviving longer and living with chronic medical conditions. Many of these critical conditions covered by the critical illness policies may force you to give up work while you recover and this is where the critical illness cover comes into play. The critical illness plan will pay you out a lump sum so that if you are forced to give up work, you will still be financially secure. You can use the critical illness cover pay-out to pay your mortgage off and keep a roof over your head. You can even use the money for private treatment if you so wish. It’s your pay-out and yours to spend on what you deem most necessary.