Life Insurance Advice

Expert Guides

Life insurance has been designed to protect your loved ones financially if you pass away, helping to reduce the financial impact that can often come hand in hand with the death of a loved one.

Providing peace of mind that your family will not have to bear the financial brunt of your passing, life insurance pays out a cash sum to your loved ones in the event of your death. There are a wide variety of different life insurance policies available, providing different levels of cover to meet your individual circumstances. 

When looking for a life insurance policy, you will need to select how much cover you need and how long you need the policy for. Once you have done this, the insurer will then provide a quote, outlining the monthly or annual premium of your policy.

Not everyone needs life insurance or chooses to take out cover. Whether you feel the need to have a life insurance policy in place comes down to your individual circumstances. For example, if you have a partner, child or other dependants that rely on you financially, life insurance can be incredibly beneficial and put your mind at rest.

If you are yet to make a decision regarding life insurance and you are looking for more information about this type of cover, we have created a helpful guide outlining everything that you need to know about life insurance.

How does life insurance and critical illness cover work?

There are two main types of life insurance: term life insurance and whole of life insurance. But what is the difference? Term life insurance sets a maximum term and pays out a cash sum if you die during that period, if you do not die during the term, there will be no lump sum payable. Alternatively, you can opt for whole-of-life insurance, which will ensure you are covered until you pass away, no matter your age.

With both types of policy, a cash sum will be paid out if you pass away as long as you keep paying your monthly premiums. When choosing a life insurance policy, it’s entirely up to you to decide how long you would like your cover to last for and whether you would like single cover or joint cover. 

Critical illness cover will cover you if you are diagnosed with a terminal or critical illness and pay out a lump sum to assist you at a time when you might not be able to work due to your illness.

Benefits of life and critical illness insurance

Both types of policies offers a host of benefits, and are particularly important if you own a property with a partner, or have children or any other dependants that rely on you financially. The benefits include:

  • Helps to protect your loved ones financially 
  • Can help to reduce the financial stress of losing a parent or partner
  • Provides peace of mind that your loved ones will be looked after
  • Can help compensate for a loss of earnings in the event of your death
  • Can be put towards any unpaid debts that will fall to loved ones
  • Can contribute towards funeral costs
  • Can provide you with a lump sum payment when diagnosed with a terminal or critical illness

Who doesn’t need it?

You may not need life insurance if:

- you’re single

- your partner earns enough for your family to live on

- you’re on a low income and could be eligible for state benefits.

If you’re not sure whether you would benefit from life insurance, you should seek professional financial advice.

Do I need life insurance for a mortgage?

Contrary to popular belief, you do not need to take out life insurance in order to get a mortgage. However, one of the main reasons why people take out life insurance is to ensure that their families can carry on paying the mortgage in the event of their death.

If you require any more assistance or you wish to talk through your life insurance options, it’s always worthwhile speaking to the professionals. Here at Charters Financial Services, we are always on hand to offer the very best life insurance advice. Get in touch to find out more on 03454 500 200 or 

Critical illness cover is designed to help reduce the financial impact of a critical illness on your family. 

Providing a tax-free lump sum if you are diagnosed with a pre-defined illness, medical condition or disability, this form of financial protection will give you the peace of mind that you and your family will be financially secure if you can no longer work due to illness. 

Critical illness policies generally cover major illnesses such as cancer, heart attacks, or stroke, and other long-term illnesses that alter your standard of life and result in you having to take a substantial amount of time off work or having to give up work completely. 

What does critical illness cover?

There are many providers offering critical illness cover, and the right policy for you will depend on your needs and current circumstances. Of course, when looking for any protection policy, it’s always worthwhile shopping around and doing your research to ensure you get the best possible deal, as well as the right level of cover. 

The vast majority of critical illness policies cover: 

  • Cancer
  • Heart attack 
  • Stroke
  • Loss of arms or legs and major disabilities 
  • Diseases such as multiple sclerosis or Parkinson's disease

All polices cover numerous life-changing illnesses and conditions, but make sure you check your policy as not every type of illness is covered. 

How does critical illness work?

Critical illness is designed to support you and your family if you are diagnosed with a life changing critical illness. 

And in the event that you become critically ill, your insurer will either offer partial payments for less severe illnesses​ or pay out a lump sum to ensure that your family’s quality of life is not impacted due to your inability to work. 

If you have a partner or dependants that rely on your income, it’s definitely worth taking out a policy. 

Why choose Charters Financial Services?

If you would like to talk through your critical illness cover options, make sure you speak to the professionals. Here at Charters Financial Services, we are always on hand to offer the very best critical illness and life insurance advice. Contact us today, our friendly experts are on hand to help.


Life insurance gives you peace of mind that your loved ones will be covered financially when you die – your next of kin may become responsible for any outstanding debts you may have, your childcare costs or mortgage repayments. Even if you have no debts, own your home outright and have been careful with your finances throughout your life, you may still wish to take out a life insurance policy to leave a legacy for your loved ones and to help cover the cost of your funeral arrangements.

These are some of the key reasons why people buy life insurance:

  • Buying a new home – you’ll be protecting the cost of payments on your home and meeting your financial commitments should the worst happen.
  • Getting married – a policy that pays out if one of you were to pass away will ensure your partner’s financial commitments are covered.
  • Planning a funeral – policies such as over-50s life cover term life cover will pay the cost of a funeral on death.
  • Having a baby – raising a child is expensive and if you’re planning private schooling or university, the costs can be enormous. Taking cover to protect your children’s future expenses will give you peace of mind and reassurance for them.
  • Inheritance tax – If you want to protect the legacy that you’ll leave your loved ones when you die rather than have it all pass to HMRC, you could consider putting your life insurance policy into a trust, which will ensure what you leave behind will be exempt from inheritance tax.

 There are three main types of term life insurance:

  • Level cover offers a fixed cash sum on your death.
  • Decreasing cover pays out a reduced cash sum over time in line with your debts, loans or repayment mortgage – the longer your cover is in place, the less will be paid out.
  • Increasing cover pays out an increased cash sum each year to counter inflation – your cover increases in line with our monthly payments.

If you’d like to know more about life insurance, talk to our team of independent insurance protection advisers who have access to a great range of insurance products and can find you the right plan for your needs. Call us on 08454 500200 or click here to make an enquiry.

Having used charters to secure our first mortgage in 2018, we’ve returned to them to secure our first ever remortgage this year. We had such a great experience with them as first time buyers, that we’ve become back to them again - and I’m so happy we did. This time Robert Ferguson has looked after us to get the deal we wanted. He’s patient, informative and he delivers a service that has been nothing short of excellent. The whole process as been made as stress free as possible, during what is quite an uncertain and unnerving economic time. Rob took us through a number of options in accordance to our needs and found us a fantastic product that we are very happy with. Once application had been submitted, having secured a fantastic rate, we were then looked after by Cara Simpson-Hayter. Cara has been absolutely fantastic and has kept us informed through every step of the application process. She has chased up various parties to get the info we needed and to speed the application along with the lender. Cara is incredibly efficient and effective and has been truly wonderful throughout. Both Rob and Cara have addressed all our concerns and answered ALL our questions (there were a few having only gone through this once before!) leaving us feeling confident and at ease the whole time. Again the service that has been provide has been thoroughly excellent, we couldn’t be in better hands. Thank you so much for making this such a painless process in what is quite a stressful time! We cannot recommend Charter’s enough and we will definitely be using them again in future! Thank you Rob and Cara!!

Oliver & Caroline H

June 2020

Get the Right Mortgage Advice