No one likes to think about dying. And even though it’s the only thing in life that’s guaranteed, very few of us put a life cover policy in place that truly reflects our life and our love for those we leave behind.
Insurance experts estimate that people are under-insuring their lives to the tune of around £2.3 trillion. If you’ve got financial dependents, the chances are that you contribute to that astonishing figure.
Let’s make this clear: contractor life cover is not about you. It’s about putting something concrete in place for those who currently depend on your income for when you’re no longer here to support them.
For a totally free, no obligation consultation, complete our call back form and we’ll happily walk you through any one of the life insurance policies we’ve put together for contractors.
We’ve helped people from all across the UK to protect their loved ones by arranging a life policy for them. Rather than simply take our word for it, here’s feedback from our customers about the services we’ve provided for them:
I’m fully covered with very little hassle – and it’s all thanks to Contractor Mortgages®.
– James Cuellar
You made it all very easy for me.
– Sean Woodward
I kept on putting off life insurance – but you helped make it painless.
– Franz Breaker
Lean on our expertise of providing life cover for contractors
Many contractors have an unpredictable work pattern. So much so that it can be both difficult and frustrating when trying to plan beyond a certain point in the future. Not for lack of clarity on your part; rather, for finding general insurers who’ll commit to insuring against your circumstances.
With this being the scenario, it’s essential that you get professional advice when considering life insurance. Please find further information below to help you find the most affordable policy that both suits and covers you adequately:
Whole Life Cover
Whole life cover for freelancers is straight forward: whatever age you are when you die, the policy pays out. Because there’s a guaranteed pay out on death, the premiums can be more expensive than Term Life Cover.
However, whether it’s due to the way contractors work or the indefinite nature of their employ, Whole Life is a very popular type of cover for the self-employed.
Term Life Cover
As suggested, Term Life Cover is slightly less expensive than Whole Life. The policy runs for an agreed time period, or term, usually until retirement. However, once the premiums stop, so does the cover. There is no cash value at the end, either.
A Family Income Benefit Plan
The Family Income Benefit Plan is aimed predominantly at contractors with younger families and perhaps new mortgages. The payout would help with household bills and education, by way of a set income provided over a set term.
If the plan is taken out for 25 years, (for example), the net effect would be that the plan is worth more if cashed in early than if payout were to be triggered toward the end of the term.
This is no hidden twist; it simply means that if death were to occur when there were only two or three years left to run on the term, monies received would be significantly lower than if death had occurred early on in the term.
Level Term Assurance
Level Term can be used in very specific cases; should you pass away during the term, it covers
- your life for the time when your children are dependent on you;
- an interest only loan, e.g. an ISA mortgage, so that your family are left without any debt;
- income lost. A lump sum is provided for your family to place on deposit and draw off interest as a way of replacing your regular income.
Decreasing Term Assurance
This policy covers a repayment, like a repayment mortgage. The less you have remaining to pay off on your mortgage, the lower the premium.
The lower premium reflects that, after a time, there will be less money needed to cover any outstanding debt (assuming you keep up with your mortgage payments, of course).
These are just a few pointers of the types of life cover plans that Contractor Mortgages® can provide and how they may used for the protection of you and your family.
Of course, we can embellish on a particular policy if you’re interested in one specifically. We can also assist you by taking you through the options available.
Based on your individual circumstances, our advisors can ensure that you choose a life cover policy that serves your best interests in your current contractor role.