How much would your life insurance payout be?
When you first apply for a life insurance policy, you will be able to customise the type of policy you have and the amount of cover you would like to receive. This will determine the ultimate amount of financial support that is paid out to your loved ones and so it is important to make sure all is accounted for.
What might affect the maximum sum?
Your age at the time you take out your policy will influence the maximum sum available to you as the older you are, the lower this sum will be.
Level term vs decreasing term life insurance
The amount your loved ones will receive depends on the type of life insurance policy you’ve taken out.
At Beagle Street we offer both decreasing and level term life insurance. With decreasing term life insurance, the sum available for payout will decrease over time. This type of cover is well suited to covering large debts such as a mortgage. The monthly premiums on these policies are more affordable than level term policies but can still ensure your families biggest assets are protected.
Our decreasing term life insurance decreases monthly in line with an annual interest rate of 6%. So, if you have a mortgage or other debt with an interest rate less than 6%, decreasing term cover could help your family to clear that debt when you die.
Level term life insurance cover pays out a fixed amount of money upon your death and this sum is the same wherever you are in your policy. Level term life insurance can be used to cover fixed costs and means that you know exactly how much your loved ones would receive if you passed away.
It is important to understand which type of policy you have and consider how much you need to be covered for throughout your policy before deciding on one.
Paying out your claim
We are here to support you and your loved ones through the process of making a claim. If you need additional support, we have bereavement trained handlers available to guide you through the claims process.
To streamline the process of making a claim, we also offer a free simple Will writing service to all policy holders. A simple Will allows you to leave your estate to a maximum of 6 beneficiaries without the use of trusts or tax planning. If you do not have a Will, it is not always clear who you wanted to leave your pay-out to, and this could hold up the claim.
Another benefit we offer to all our customers is the use of our free trust tool. Putting your policy in trust allows you to name trustees (over the age of 18) that you trust to be responsible for distributing your payout. This service can also help you to avoid a potential tax bill if your estate is valued as greater than £325k, at which point inheritance tax would normally be 40%. This is an excellent way to make the most of your cover and give you peace of mind that you are supporting your loved ones in the way you intended.
