Life insurance FAQs

There is a huge amount of information about life insurance available, so it can feel difficult to find straightforward answers to the most asked questions all in one place.

To make life easier for you, we have asked and answered some of the top questions about life insurance below.

How much does life insurance cost?

There is no one size fits all for life insurance, as everyone’s needs and circumstances are different. Therefore, there is no set price for any policy, as each life insurance policy is based on each individual's health and lifestyle disclosures.

How does an underwriter assess my life insurance application?

Your application will be assessed based on several risk factors, such as your height and weight, your medical history and lifestyle to name a few. Your chosen insurance provider may also need further information to consider your application and may ask for your consent to contact your GP to obtain this.

Alternatively, you may be asked to complete a medical examination, which is likely to consist of measuring your height and weight along with your blood pressure being taken and a few medical questions.

How is your life insurance premium calculated?

Providing your chosen insurer is happy to offer you cover, your life insurance premium will be calculated based on the assessment of your application, any additional medical or non-medical information received and the type, amount and length of cover you have requested.

What does life insurance actually cover me for?

Being covered by a life insurance policy means that if you were to pass away within your policy term then your life insurance policy could pay out a pre-agreed lump sum.

However, there are different types of life insurance, such as:

• Income protection
• Over 50’s life insurance
• Critical illness cover
• Whole of life insurance
• Mortgage protection

Can I put my policy into trust and what does this mean?

Yes, you can put your life insurance policy into trust!

We always advise each of our customers to place their life insurance policies into trust. A trust is a legal agreement which determines who receives the pay-out from your life insurance policy. Not only can you choose who but also how much each person receives from your policy.

Putting your policy into trust can help mitigate inheritance tax, and avoid probate! At Caspian, we have an in-house trust team that is on hand to take care of you throughout the trust process and help you with any queries you may have.

What happens if I outlive my life insurance policy?

Sadly, there is no prize for surviving the term of your insurance. The policy will simply cease to exist and you will no longer be covered, if you have a policy with a pre-agreed term.

Regular reviews of your policy are recommended by our specialists as this ensures that your policy always reflects your current circumstances and means that as long as you are paying your monthly premiums, you would not be without cover.

What is terminal illness cover and is it included in my policy?

Terminal illness is included within most life insurance policies. If included in your policy it could allow you to access your full cover amount in the event that you were to be diagnosed with a terminal illness, meaning you have a life expectancy of less than 12 months.

Do my payments stay the same throughout the term of my life insurance policy?

Depending on the type of policy you have, your life insurance premium can always stay the same throughout your policy. When you initially arrange your policy with one of our protection specialists, you will agree on a sum assured and once your policy has been accepted and assessed by underwriters, you will find out your monthly premium amount.

However, if your policy is index-linked, then both your monthly premium and sum assured will increase slightly every year. This is to keep your policy roughly in line with inflation so that the value of your policy keeps the same worth over the duration of your life insurance term.

Having indexation on your policy is completely voluntary and you’ll be given the option to opt-out each year if you don't want to proceed with the increases.

Can I amend my policy in the future?

At Caspian, we always advise regular reviews on your life insurance policy. Whether this be every two years or every four years, it is essential to review your cover, as your circumstances may change within this time period.

Our team of friendly review specialists are able to assess your circumstances, search through the UK’s leading providers, and see if there is a more appropriate policy suited to your current needs.