Life Insurance

Life Insurance

For just a few minutes now your family can enjoy peace of mind for a lifetime through Birmingham’s Caboodle Finance

Life insurance cover provides you with the peace of mind that if the worst happens your loved ones will be provided for. The amount of life insurance you take out will depend on your individual needs and circumstances but can be done to cover your mortgage, other debts or simply to provide a lump sum payment to your family in the event of your death. Your Birmingham based Caboodle adviser can discuss this with you to make sure the policy is tailored to match the level of cover you wish to provide.

There are different types of life cover available including the two most popular, which are Level Term Life Insurance and Decreasing Term Life Insurance

Level Term Life Insurance

This type of policy pays out a fixed amount lump sum on the death of the insured during the insured period. The amount of benefit and the term of the policy are chosen at the start of the policy and do not change unless the policy is renewed in the future. The policy can also be set up so that the benefits can be invested to provide a regular income rather than a lump sum payment. This type of insurance can also include critical illness cover to provide similar benefits upon the diagnosis of a specified critical illness.

Decreasing Term Life Insurance

This amount of benefit paid by this type of policy reduces each year during the term and is generally used in conjunction with a repayment (or capital and interest) mortgage as the balance on such a mortgage also reduces each year. As the benefit reduces each year compared to the fixed benefit payable under a Level term policy this type of life insurance is generally less expensive. This type of insurance can also include critical illness cover to provide similar benefits upon the diagnosis of a specified critical illness.

There are many factors to consider when choosing a life insurance policy and your Caboodle adviser will be on hand to assist, but some of the most frequently asked questions are listed below

How much life cover do I need?

– This very much depends on individual circumstances and the needs of your loved ones after your death. Your adviser will be able to discuss the key areas to consider when deciding upon the amount required

Are the premiums fixed for the term of the policy?

– This depends on the type of policy you decide to take.
Guaranteed premiums remain the same for the duration of the policy whereas Reviewable premiums may change during the term based on the Life Insurance providers’ assessment of all their policies

Why do I need life insurance?

– Life insurance will ensure that your family or any other person who relies on your income do not suffer financially after your death. The question that is often asked to people without life insurance is, “how would your family survive if you died?” Life insurance provides the peace of mind that your family would not suffer financially

Can my partner/spouse be covered as well?

– Yes. You can either take out individual polices which will pay a benefit in the event of either or both of your deaths or alternatively you could take out a joint policy which will generally payout on the ’first death’

When does the cover end?

– The cover will stop when you reach the end of the term selected at the onset of the policy or when a benefit is paid out in the event of the insured persons death

Can I cancel my policy?

– The policy can be cancelled at any time. If it is done within 30 days of being set up any premiums paid will be refunded, otherwise you will get nothing back and the cover will cease immediately upon cancellation

How much does life insurance cost?

– This will depend on a number of factors including the amount of cover you require, how long you want the cover to last for, your age, gender and state of health. Your Caboodle adviser will discuss the options with you so that the lowest price can be found

What other options are there?

Family Income Benefit

This type of policy will pay out a chosen amount of income on a regular basis not a lump sum. It is designed to replace any income lost following the death of the life assured. The amount paid will be tax free for the period of the policy.

If the policy was taken out for 20 years and the life insured died at the end of year 1, the amount of income specified would be paid for 19 years. If the life assured died after 18 years, the benefits would be paid for 2 years. After the term of the policy finishes all benefits cease.

 

The process is simple, to get a free no obligation personal illustration for life insurance cover either complete the short online enquiry form and a Caboodle adviser will contact you, or call us on 0800 151 2407 or 0121 308 9114.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 9.2% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of Pink Home Loans, Pink Home loans is a trading style of Advance Mortgage Funding Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 305008) for mortgage and non-investment insurance advice.
The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2014 Caboodle Financial Services Ltd