Premiums and Risks
Life insurance is an important financial safety net. It’s designed to pay a lump sum to your loved ones in the event of your death. You need to read the Key Features Document PDF carefully before buying a policy. This provides details of the circumstances under which the policy would not pay out. The full terms and conditions are in the policy schedule and policy terms and conditions which will be sent to you when the policy starts. Policy terms and conditions are also available on request.
As with all life insurance policies, there are certain things to be aware of:
Risks
- It's essential that you give Legal & General all the information they ask for during the application and that it's accurate. If you fail to mention something like a medical condition, for example, they may not pay out in the event of a claim.
- Mortgage life insurance is there to help pay off your mortgage, in the event of your death or diagnosis of a terminal illness.
- For mortgage decreasing term assurance, if your mortgage interest rates average over 10% during the policy term, there may not be enough cover to pay your mortgage off in full.
- Life insurance plans are not investment products. They have no cash in value at any time. Also, if you stop paying the premiums before the end of your policy, your cover will end after 30 days and you will not get anything back.
- When you take out cover, you must tell Legal & General if any of the following change between completing your application and when your policy starts:
- family history
- medical disclosures
- occupation
- travel or residence
- pastimes
- alcohol consumption
- start smoking
- use of recreational drugs, for example cocaine and heroin
If you don't tell Legal & General about changes to any of the above, it could mean your policy won't pay out and they may need to cancel your policy.
Premiums
- The main factors are your age, sex, occupation, smoker status, health, the level of cover you need and type of contract that you choose. Normally, the older you are, the higher the premium. Your individual height, weight, medical history and lifestyle are all assessed.
- Premium payments include all expenses and life cover starts from just £6 per month depending on your individual circumstances and needs. Premiums are guaranteed - you pay the same throughout the term of the policy unless you alter your policy.
- If you decide to add critical illness cover to your life policy, you can choose between guaranteed or reviewable premiums. If you choose reviewable premiums, these are reviewed every five years and could increase or decrease.
- If you choose to exercise your guaranteed insurability option there are certain terms and conditions for increasing your cover, which are outlined in the Key Features Document PDF. Please read it carefully.
- All Legal & General life insurance policies include terminal illness cover at no extra cost. What is covered under terminal illness cover?
- When underwriting insurance policies, insurance companies base their premiums on a wide variety of factors that may affect the claims cost they observe among their customers.
- If you take out life insurance with Legal & General, you have the option to pay your premiums monthly or annually. If you decide to pay annually you will receive a discount, giving you cheaper life insurance.
