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Life Insurance

Many jobs have a “death in service” benefit that many take for granted, and will provide your loved ones with a lump sum payment if you were to die whilst in that employment.

However, when you decide to become a contractor this benefit will no longer be available to you and you may want to consider how your loved ones would cope with mortgages, loan repayments, education and childcare costs and other outgoings in the event of your death, especially if you are the main earner in the family.

Death isn't something that we like to think about, but it is often referred to as 'assurance' rather than 'insurance' because unfortunately there is no "risk" of it occurring - it is inevitable.

The main types of life insurance that you will encounter are:

LTA (Level Term Assurance)
DTA (Decreasing Term Assurance)
FIB (Family Income Benefit)
WOL (Whole Of Life)

Some policies include a 'waiver of premium'. This will protect your payments against you being unable to work through ill health (usually after a period of six months), and ensure that your dependents remain protected. The waiver will usually cease when you are judged able to return to work.

There is also sometimes the opportunity to 'inflation proof' your policy, which will insure that the benefits in the event of your death changes as inflation does, ensuring that your loved ones benefit less than you expected when you initially took the policy out. members have access to brokers who specialise in this type of insurance. Click below to take the first steps in finding the right cover for you.

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