Special Types of Life Insurance

There are occasions when life insurance is available or taken out for special reasons. This explores some of those special events.

Works Pension Schemes

Most pension schemes have life insurance provision for ‘In Service Death’ . If you die whilst still employed you get a lump sum equal to a number of weeks or years wages. Check your contract of employment and or pension handbook.

It is a comparatively cheap benefit for employers to offer as they are covering all staff whilst you can only get cover as a one off.

Travel Insurance

It is no consolation to you if you die on holiday but you may want to cover the cost of repatriation of the body. Most holiday insurance will have a life element contained within the policy. You can also be sold one trip life insurance but be wary the cost can be prohibitive and not worth the effort.

Credit insurance

Some insurance is provided by banks or credit card companies to have your debts repaid if you die. It saves the companies taking the money out of your estate and assets after you have gone.

Friendly Societies & Clubs

Small grants for funeral expenses were often part of the membership of clubs and societies. There are also prepaid funeral cost plans.

A Bereavement Payment is a one-off tax-free lump sum payment of £2,000. You can claim it if you were widowed on or after 9 April 2001. You must claim within twelve months of your husband’s, wife’s or civil partner’s death.

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Joint Life Policies

You can arrange insurance on more than one life. Useful if two people have a joint mortgage or the responsibility for  young children.

Lloyds of London can arrange special insurance via your broker on a host of subjects and risks. This may be useful or appropriate if you engage in dangerous pursuits such as parachuting or motor racing.