"I'm covered through work"
Death in service is a valuable benefit, but it belongs to your job. Change employer, go self-employed or get made redundant, and it usually stops. It is also set as a multiple of salary, which may not match your mortgage and family costs.
Personal cover stays with you whoever you work for. Many people use death in service as a top layer and hold their own policy underneath it.
Death in service usually pays out through the scheme's trustees, who decide who receives it guided by the wishes you recorded. That normally works well, but you have less control than with a personal policy written into your own trust.
"Insurers always find a way not to pay"
UK insurers publish their claims figures every year, and they show that the large majority of life claims are paid. Where claims fail, the most common cause is information left out of the application, such as an undisclosed condition or smoking.
That is why careful answers matter. Tell the insurer everything it asks about, even if it seems minor, and your family's claim stands on firm ground.
If you are unsure whether something counts, mention it. Insurers would rather hear about a minor issue now than find it later in your medical records. A broker can help you word your answers so nothing important gets missed.
"I have a health condition, so I can't get cover"
Plenty of people with diabetes, high blood pressure, past cancer or mental health conditions hold life insurance. The insurer may ask more questions, add an amount to the premium or exclude a specific condition, but a decline is far from certain.
Insurers differ a lot in how they view the same condition. A broker can approach the ones most likely to offer fair terms.
Underwriters look at the detail: how long ago treatment ended, how well a condition is controlled, and what your recent check-ups show. A condition that leads to a decline at one insurer can lead to an offer at another. Clear, recent medical records help your case.
Other beliefs worth questioning
Some people wait until they feel older, but premiums are set on your age and health when you apply, so waiting usually means paying more. Others assume single people have no need, yet a mortgage, a business or parents who rely on you can all make cover worthwhile.
- "It's only for parents": anyone with debts or dependants can benefit
- "The payout gets taxed": it is not usually subject to income tax, though it can count for inheritance tax unless in trust
- "I'm young, so there's no rush": younger applicants often lock in lower premiums
- "It's too complicated": a broker can explain the choices in plain words
How Hi Tomorrow helps you see the facts
We are happy to talk through any worry before you commit to anything. We will tell you how your health, job and plans affect cover, and what the insurers on our panel are likely to offer. If cover is not right for you, we will say so.