What UK Life Insurance Policy Makes Bonus Payments For No Claims?
While thinking about our own death is not a happy topic, it is necessary to consider how loved ones will carry on. It is understood that many people will be upset when we die but there are also more practical matters to address. Family members may be dependent upon our income so they may have trouble paying bills after our death.
Resulting financial issues make it even more difficult to deal with the death of a loved one. One way to ensure that beneficiaries are taken care of financially is to purchase a life insurance policy.
It is not complicated to understand the purpose of life insurance, which is to pay a monetary benefit upon the death of the insured. Understanding and affording premiums may be more difficult. Premiums are based on several factors including age and health status and they can be very expensive. A whole life policy lasts for the lifetime of the insured, making it much more costly than a policy with a specified term.
Increasing costs of living and steady salaries have made it difficult for many UK residents to afford life insurance, particularly a whole life policy. The limited period of protection provided by term life insurance is an alternative for some. However, even this can be a financial burden so anything the provider can do to assist with costs will make this cover more attractive.
Paying a Bonus for No Claim
Some life insurance policies reward insureds for living past the termination date of the cover. Paying a bonus for not filing a claim provides a refund of a portion of premiums, making the cover more affordable. Sun Life Insurance offered through AXA Wealth Ltd. is one of these policies. Five coverage terms are available and premiums are as low as £5 monthly. Applicants qualify by answering “no” to each of five questions for eligibility, some of which are health-related. If the applicant passes this inquiry and is between 18 and 59 years old, he or she is guaranteed acceptance.
An insured may provide beneficiaries with a lump sum as high as £150,000 based on the selected premium amount and cover term. During the decision-making process, the insured should recognize that the value of this sum will decrease over time due to inflation. In addition, if the sum is paid to the estate of the deceased, inheritance tax may apply that decreases the value even more.
This policy will only pay a bonus if premiums are paid when due and a claim is not filed because the insured lives past the termination date of the cover. In this situation, the insured will receive a refund of 15 percent of premiums paid. If any premium is not paid on time, the policy will terminate and no refund will be provided. This insurance policy does not carry a cash-in value.
Other Positive Features
This policy has two additional features that make it attractive. Premiums do not increase from the figure listed in the contract and the premium is waived for the first month. A benefit for terminal illness is included that pays the cash sum upon terminal illness diagnosis. Certain conditions apply so learn more by contacting an insurance professional.
Being able to receive a bonus while having insurance cover in place is an attractive benefit for budget-minded UK consumers. The ability to get some premiums back due to surviving past the termination date of the policy helps to justify the cost of this cover. An insured also receives comfort in knowing that a sum will be paid if he or she receives a terminal illness diagnosis during the cover period. Extra money can always be put to good use.