Life Insurance Advice

Expert Guides

Protecting You and Your Family

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 

What does critical illness insurance cover?

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.


Super impressed with the service, speed, care and attention that Charters showed us when arranging our mortgage. Kevin and Marie were outstanding, really responsive and made the whole process smooth and painless. Thanks!

Martyn C

November 2020

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