Life Cover
As a Contractor you miss out on the life cover offered by a large employer so it is vital that you put a plan into place to secure your families future should you die.
ContractorFinancials specialise in finding the right insurance to suit your individual needs as a Contractor and provide this essential cover at an affordable price. There are two main types of life insurance:
Term Cover
Term cover offers an inexpensive protection policy that lasts for a given period and will end when the agreed term is finished.
Whole of life Cover
If you want to cover yourself for death at any age then a Whole of Life policy could be the answer. Despite being slightly more expensive than a Term cover policy, it is often popular with contractors because of the long-term cover that it provides.
Contractor Financials offers a variety of life cover policies which can be used in various ways:
Level term assurance plan
These policies pay a set lump sum to your dependents that they can then invest to gain an income. The value of this lump sum can be affected by external influences such as interest rates or inflation that reduce the amount of income.
- Covers you for the period in your life i.e. for when you have dependent children (e.g. until they are 18 or 21)
- Saves your family from being left with your debts by protecting loans or a mortgage.
The cover should be inflation proofed so that it holds its value for the life of your policy. This means that the sum paid out by the insurer upon death will be worth the same amount at that point as it is now, as it will rise with the level of inflation.
Decreasing term assurance plan
Pays a steadily reducing lump sum depending on when death occurs through the term of the plan. Can be used to provide funds to help settle a repayment mortgage if you die.
Family income benefit plan.
This policy will provide a set income over a pre-determined term so that your family will have help with the bills etc.
Your total payout will differ according to how far into your policy you are i.e. if you claim early on then the overall payment will be larger than if you claim at the end of the policy because the number of annual payments made would be less. If you are looking for a set lump sum regardless of when a claim is made then a level term may be better suited to your needs.
