You are here: Home - Insurance - News -

Get a life (insurance policy) – before it’s too late (6)

Written by:


LIKE ANY OTHER financial product, life insurance comes with a range of bits and bobs (or optional extras, if you’re being formal) that may or may not be helpful to you. There are other issues around life insurance too, which we look at here.

You can choose a life insurance policy, for example, with waiver of premium, where the life insurance company will continue to pay your premium if you lose your job because of accident or sickness.

Critical illness insurance can be bought as a separate cover to life insurance or as an addition to whole life, endowment or term insurance. This covers you for serious medical conditions like heart attack or cancer. If you develop one of the conditions listed in the policy a lump sum will be paid.

Income tax is the bane of many lives, but provided your life insurance policy is a qualifying policy, the payout on death or maturity of the policy is tax-free. In order to be such a policy your life insurance has to meet a number of statutory conditions, including the need to pay premiums at annual or shorter intervals for at least 10 years or until your death, if this is earlier. BUT BEWARE: If you surrender your policy within the first 10 years may incur income tax – check with your salesperson or adviser for details.

For a fuller explanation of life insurance generally, go to the Association of British Insurers (ABI) at


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
ED’S NIB: Mervyn King – an apology

THE EDITOR wishes to apologise for yesterday’s report quoting Bank of England governor Mervyn King saying that he would not bail...