Life cover, the basics.

Life cover policies pay out a cash sum in the event of your death. They are suitable for people who have financial dependants, like partners or children, or if you have outstanding debts, like a mortgage. Some life cover policies - like Greenbee Life Cover - will pay out before you die if you have a terminal illness, subject to the policy’s terms and conditions.

Buyer's checklist

What does life cover provide?

Life cover will pay a one-off cash sum if you die during the term of your cover. The 'term' of your cover is the length of time for which you are covered. You can usually choose between level cover and decreasing cover:

- Level cover: The cash sum remains the same throughout your cover term.
- Decreasing cover: The cash sum reduces over the cover term, normally in line with the amount outstanding on your mortgage.

How much life cover should I get?

You'll need to work out how much money would be needed, in the event of your unexpected death, to:

- cover your mortgage
- keep your family comfortable
- pay off any other debts and expenses.

You'll also need to think about how long you want your policy to run - for example, do you want it to last until you retire, to the end of your mortgage or until your children reach a certain age?

If you want to work out what your monthly outgoings are, to give an indication how much cover you might require, use the Greenbee Life Cover calculator.

Although we're more than happy to give you information about Greenbee Life Cover, discuss your requirements and provide a personalised quote for you, we can't give financial advice so you must decide if this plan meets your demands and needs.

What do I have to tell insurers before I take out a policy?

The most important thing to do when getting a quote or buying life insurance is to answer all questions truthfully, accurately and completely to the best of your knowledge when applying for your plan and when making a claim.

Insurers will ask you questions about your personal and family medical history, as well as your lifestyle. A claim may not be paid if you have not answered all the questions truthfully, accurately and completely when applying for your plan or making a claim.

Can I protect my policy premiums if I'm unable to work?

When taking out life insurance, it's a good idea to consider paying the extra to add waiver of premium cover. This keeps your payments going if you can't work because of illness or accidental injury.

Greenbee Life Cover gives you the option of taking out the waiver benefit at the application stage. This benefit will keep your policy payments going if you are unable to work for more than six months. Greenbee Life Cover will keep the premiums going until the end of the cover term if necessary.

Can my policy include my partner as well?

You may be able to set up your plan jointly with your partner. Greenbee offers a choice:

- Single life policy: Which covers just you
- Joint life policy: Which covers you and your spouse or civil partner.

A joint life policy pays a cash sum on the first death, after which the plan will end. With Greenbee Life Cover you also have the option of taking out waiver benefit cover on either one, or both, of your lives.

Can I change the amount of cover once I've taken out my life insurance policy?

You never know what the future holds and a change in your personal circumstances might mean that you want to increase or decrease cover later on. Greenbee Life Cover enables you to do this, and may even allow you to extend your policy term if you need to. Increases are subject to your health, occupation and pastimes at the time. Any changes are also subject to terms and conditions at that time.

Greenbee Life Cover also includes an option that allows you to increase cover on certain special events (such as the birth of your child or your marriage) or to meet changes in your mortgage arrangements.

Both options can be exercised without having to provide any further evidence of health, occupation or pastimes. Any increase in cover or extension of term would be subject to the policy's terms and conditions. Please see the Key Facts for more information.

Who will the money be paid out to?

The claim will be paid to the estate of the sole policyholder, the estate of the joint policyholder or their survivor, the legal personal representative or any person to whom any of the already mentioned may have legally assigned the policy.

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Life Assurance - Glossary of Terms

Beneficiary

If the policy is written under trust, then this is the person to whom the payout will be made in case of your death. If not written under trust, then the proceeds will pass to your estate.

Claim

This is made on behalf of the person who dies. Successful claims will result in a one-off cash sum payment. A claim can also be made if someone is suffering from a terminal illness. In this circumstance it means the person will make the claim themselves.

Cover

Another word for policy.

Decreasing Term Assurance

Life assurance for a fixed period of time, in which the sum assured decreases each year. The cash sum reduces over the cover term, normally in line with the amount outstanding on your mortgage. The plan will never have a cash-in value.

FSA

This stands for the Financial Services Authority, which is the independent financial services regulator in the UK.

Insurable Interest

Exists when one of the lives assured has a close and/or dependent financial relationship to the other. Common examples of insurable interest are those between husband and wife and anyone who is financially dependent on a particular person. Insurable interest must be demonstrated in order for a policy to be taken out.

Level Term Assurance

Life assurance for a fixed period of time. The level of cover or sum assured remains constant throughout the term. At the end of the term the policy will end. The plan will never have a cash-in value.

Life Assured

The person(s) whose life(s) are covered by the policy.

Medical evidence

This may be required from your doctor/GP to work out the cost of cover. This could mean an examination, tests or providing details of your medical history. We would only request this with your permission. We will cover the cost of obtaining this.

Policy Owner

The owner of the life assurance policy. It is generally the life assured.

Premium

The amount you pay each month by direct debit.

Sum assured

The amount you choose to be covered for.

Single / Joint Cover

Insurable interest requires that the lives to be assured have some financial interest in each other. This interest must arise through a legal or financial obligation. Some examples are:

• Married couple or registered Civil Partners
• Cohabiting couples with joint financial holdings or joint dependents (e.g. children)
• Two closely related adults (i.e. a parent and an adult child, or brother and sister) with joint financial holdings or commitments. Related adults would also include adopted and step relationships
• Individuals who are cohabiting in same sex relationships, providing there are joint financial commitments or holdings

Underwriting

This is the process that assesses the risk of the life assured making a claim. This is done by evaluating the information you provide in the application form, along with other evidence we may receive, such as a medical report from your doctor or a medical examination.

Term

The period of time you're covered for.

Terminal illness

Defined as an advanced or rapidly progressing incurable illness where, in the opinion of a Consultant and our Chief Medical Officer, life expectancy is no greater than 12 months. This is automatically included during the period of cover - excluding the last 18 months, but you must tell us about it within 3 months.

Waiver of premium

If you choose this option, for an extra cost, we will pay your premiums for you if illness or accident prevents you from working for more than 6 months.

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