Category: Life insurance

Emma and her financial protection

Please note: The following is an example customer.

Emma is a 30-year-old single mum; her daughter is 4 years old and will be starting school soon. Looking at schools has made Emma realise her little girl is growing up and it’s making her think about the future. Her daughter might want to go to university when she’s older and there are a lot of costs involved in education. Naturally, Emma wants the best for her daughter and wants to make sure her future is protected.

Being on her own Emma is conscious that her daughter relies on her, and only her, and she worries about what would happen if she was to pass away before her daughter could look after herself. Emma is currently working as a retail assistant and rents her home, she’s not currently able to have lots of savings that she could leave to her daughter in the event of her death. So, she decides to look into life insurance.

Life insurance pays out a lump sum when the person insured dies, and is paid out to a beneficiary, usually a family member or friend. It can provide peace of mind that your loved ones are financially protected should anything happen to you, especially if you have dependants.

Emma chooses to get a quote for £150,000 of cover, she believes this would cover any childcare and educational costs her daughter might need/ face. She decides to get cover for 18 years …

Sarah and her financial protection

Please note: The following is an example customer.

Sarah works as a care assistant. In her line of work, she sees first-hand how loss can affect people and the financial impact it can have on a family. She’s seen the loved ones of patients not only dealing with grief but also having to change their lifestyle or move homes because they can no longer afford it without the additional income. This has made her look at her own situation and to consider how she can make her own passing easier on her loved ones when the time comes.

Sarah has a partner who she owns a home with and although they don’t have children, her partner would struggle to pay the mortgage on his own. Sarah would hate for him to have to leave their home in the event of her death so decided to look into financial protection. She learned that Life insurance policies could be a way of securing her partner’s future and could provide her with peace of mind.

Looking at the remainder of their mortgage, Sarah decides that her partner would need £200,000 to pay off the mortgage and to have enough left over to continue living in comfort. She therefore gets quotes for £200,000 of cover, and she decides to have the policy for 20 years, which means she will have the policy until she is 62 years old (she is currently 42). Due to the recent increases in inflation …

We all want to have a special Christmas this year, most of us didn’t get to celebrate in 2020 how we would have liked, so we’re hoping that Christmas 2021 will make up for it. And let’s be honest, 2021 has been just as difficult a year as 2020, so it’s understandable that we want to push the boat out and make Christmas as magical as possible.

But the festive period can be pricey. Even before the pandemic and the supply issues, Christmas would take its toll on our wallets, especially if you have kids. The latest toys and games can have eye-watering price tags, and then there’s all the food and drink to think about! Most of us won’t have much spare from our salaries during this time so it’s easy to see why people would put off taking out financial protection, it’s an additional expense you could do without, right?

It’s a common misunderstanding that financial protection is expensive, you can take out a life insurance policy from as little as £5 per month. This will vary from person to person as everyone has different cover requirements that affects the price, but when you think you can protect your loved ones for just £5, that doesn’t sound too expensive anymore.

What is financial protection and what does it offer?

For that £5 per month, you can take out a life insurance policy for yourself which means if anything happens to you and you pass away a lump sum …

We understand the world of insurance is full of terminology we don’t use in everyday conversation; it can be confusing so we have put together a jargon buster so you can be sure you are in the know when taking out your life insurance policy.

Cover amount – this is the total amount that would be paid out if a claim is made.

Sum assured – this is another term for cover amount and means the same.

Term – this means the period of time in years that the policy lasts for.

Level – this is a type of cover, it means the payout and cover stays the same throughout the amount of time you are insured for. Put simply, you decide the amount of cover to take out and that’s what the policy pays.

Increasing – this is another type of cover, as the name suggests, the payout and premiums increase annually for the duration that the policy runs.

Decreasing – this is another type of cover, as the name suggests, the cover amount decreases each year to pay off an outstanding repayment mortgage or loan by the end of the term because your debt should be decreasing as you repay it over time. 

Plan – this is another term for policy or cover.

Lives insured – this means the person, or persons if it’s a joint policy, who are covered by the policy.

Plan owner(s) – this means the person or persons who own and are …

The amount of cover you need will depend on your own personal circumstances, there is no one-size-fits-all answer. The factors you may need to consider include covering;

• Mortgage or rent payments
• Any other loan or debt repayments
• Household bills
• Education and childcare expenses
• Loss of income

To help you decide how much cover you would need, we’ve put together some examples:

First-time buyer

Meet Gemma, she’s 33 and working as a teacher. Gemma is buying her first home with her partner and this new financial burden has highlighted the responsibility she has to her partner and vice versa. Gemma is taking out life insurance to protect her partner should the worst happen to her, so they will be able to pay off the mortgage.

• Gemma and her partner decide to get 2 single policies
• They choose the Decreasing cover option as this is common for covering a mortgage
• The cover amount they decide on is £180,000 as this is the total amount on their mortgage
• And the cover term they choose is 35 years, again this is because their mortgage has a 35-year term.

Home mover

Meet James, he’s 40 and is a carpenter. James is married with a child and his wife is pregnant with their second child, this is causing them to move into a larger house and increase their mortgage. James wants to make sure his life insurance covers this increase in the mortgage and still provides enough cover for his family should he pass

We’ve all been spending more time at home than normal recently and have had to adapt to a new normal. A lot of us have started working from home and spending a lot of time online, whether that’s ordering supplies or keeping in contact with loved ones. The online world has been vital in helping us feel connected during a challenging time.

Many industries have had to adapt quickly during the pandemic to protect both their customers and employees. The financial protection industry is no different with life insurance traditionally being sold by advisers over the phone, or face to face.

We understand sometimes you just need to speak to someone and talking to a financial adviser can help you understand which policy best meets your needs, but this isn’t necessarily the case for everyone. Cignpost Life is available through some trusted advisers, but it can also be purchased directly through our website entirely online.

Having our policies available to buy online means we are always able to offer financial protection, regardless of the current coronavirus related restrictions. Not only that but you can purchase whenever suits you, our website is available 24/7.

The Coronavirus pandemic has made us all take stock of what is important.

If the Coronavirus pandemic has taught us anything it’s that life is unpredictable and any of us can be affected by health concerns at any point. It has highlighted the need for financial protection, to ensure that our loved ones are financially …

Life is unpredictable, and it’s difficult to prepare for the unpredictable. We’ve learned that the hard way with the current pandemic of the Coronavirus (COVID-19) and the impact it has had on everyday life. It has highlighted just how quickly life changes and how important it is to make sure our loved ones are protected should the worst happen.

Financial protection is a simple way to make sure, if you pass away, your loved ones will be financially covered and able to continue to maintain their lifestyle.

There are different kinds of financial protection, designed to help protect against a range of scenarios. Not every cover type suits everyone, and it’s important to understand the features of each option. We are here to help you understand the different types of financial protection available.

Term life insurance – This provides cover for a set length of time (known as the term). You choose the amount of time you want cover for and if you pass away during the length of the policy, your beneficiary will receive a lump sum. For example, if you have a 20-year term, you are protected for 20 years.

You could decide to align this term with your mortgage or until your children have finished education or left home. To find out more about term life insurance click here.

Critical illness cover – This provides cover if you are diagnosed with a critical illness. Like with term life insurance, this cover is for a set length …

The term “insurance” is common in today’s world, we insure our cars, our tech, and our holidays but most of us forget to insure the most important thing, ourselves.

Life insurance, in its simplest terms, pays out a lump sum when the person insured dies. How life insurance is different from other insurances is that the lump sum gets paid to a beneficiary, this is usually a family member or friend.

Some life insurance policies come with additional benefits or have optional paid add-on benefits. A common benefit is terminal illness cover. This means if the person insured is diagnosed with a terminal illness, the policy may pay out sooner. Cignpost Life policies include terminal illness as standard with no extra cost. You can find out more about our cover by clicking here.

What is the benefit of life insurance?

If you have loved ones who depend on you financially, life insurance can not only provide them financial security but it can give you peace of mind knowing that should you die, they can maintain their lifestyle.

Life insurance pay-outs can be used for a range of things and depend a lot on your circumstances. People generally use pay-outs to;

• Pay off mortgages
• Cover the costs of raising children
• Cover monthly bills including rent
• Pay for a funeral

You can get life insurance today with Cignpost Life from as little as £5 per month.

Cignpost Life cover starts from £5 a month but will depend on …