Contractor Life Insurance
As a contractor, you are likely to have lost the benefit of death in service cover which you would have had in place with a large employer. Many employees will never realise the value of this perk of salaried employment, but since you have left the employers safety net, you will need to think about getting suitable protection in place. As a specialist in financial advice for Contractors, we are able to search the whole of the market to find the right cover for you. Our products are tailored to your Contractor status and we don’t charge a fee for our advice. We only work with insurers that have a history of paying out and our award winning advisers will handle the whole process for you from start to finish, ensuring you receive the right protection to suit your needs at a competitive rate and stress free.
Types of Contractor Life Insurance
There are two main types of life insurance, term cover and whole of life. There are numerous different options within these two types of policies. Our experienced team will talk you through the possibilities and once they have ascertained your requirements, they will search the whole of the market to find the right cover for you and your protection needs.
A term policy will provide protection for a given period of time after which the policy will cease to exist. Rates can be competitive and the premium you pay is based on your age, if you are a smoker, and your medical history along with the amount of cover and term you opt for.
Whole of life policy
Whole of life cover has no end date so as long as you continue to pay the premiums then the cover will remain until you die at which point the insurer will pay out. Whole of life insurance generally is more expensive as you know that the policy will pay out when you die, whenever that may be.
Level term assurance
Pays a lump sum to your dependents if you die within the specified term. The amount you’re covered for remains level throughout the term. The monthly or annual premiums you pay usually stay the same too.
Level term assurance can also be a good option for family protection, where you want to leave a lump sum that your family can invest to live on after your death. Or if you need a specified amount of cover for a certain length of time, e.g. to cover an interest-only mortgage or to cover you up until your children are no longer dependent on you.
Decreasing term assurance
These policies are often used to cover a debt that reduces over time, such as a repayment mortgage because the amount you’re covered for decreases over the term of the policy.
This cover is usually cheaper than a level-term policy because the amount insured reduces over time. It can also be used for inheritance tax planning purposes.
Family income benefit plan
Is a type of decreasing term policy, but instead of paying out a lump sum, it pays out a regular income to your dependents until the policy’s expiry date if you die. This can provide a set income over a period of time to help your beneficiaries fund any living costs. However, the total benefit that this plan pays out may be moderately small if death occurs in the last years of the policy but could be very large if death occurs early in the term.
If you would like to discuss your protection options contact us on 0333 370 8888 or complete the online enquiry form opposite.
The value of investments may fall as well as rise and past performance is not a guide to future returns.
Your home may be repossessed if you do not keep up repayments on your mortgage.
ContractorFinancials is a trading name of Contractor Financials Ltd. Contractor Financials Ltd is registered in England at Gainsborough House, 2 Sheen Road, Richmond, Surrey TW9 1AE no: 4283788. Contractor Financials Ltd is authorised & regulated by the Financial Conduct Authority no: 207478.