FRANKLi Family Life Insurance

• Does Life Insurance cover coronavirus?

  You may be concerned about how your policy might be impacted by coronavirus. Don't worry, if you already had a FRANKLi policy and were to contract coronavirus and subsequently pass away from the virus, you're covered.

• What is Life Insurance?

  Life Insurance is a type of insurance policy that allows you to leave your loved ones a lump sum payment which they will receive upon your death. This can be used to pay for funeral costs, mortgage repayments or household bills. This money could help ease the financial burden associated with losing a spouse or a parent.

• Do I need Life Insurance?

  When deciding if you need Life Insurance you should look at your personal circumstances. If you have debt, a mortgage or you believe your family might struggle financially should you pass away, Life Insurance could help you financially protect their future. This can allow your loved ones to focus on what’s really important: after school clubs, football on Saturdays, pizzas in front of the telly and spending time together as a family.

• How does it work?

  Choose a policy that meets your needs with a monthly premium that is affordable and works for your lifestyle. If you pass away during the policy term, your cover will pay out a lump sum, which could make all the difference to your loved ones during a distressing time. As long as you keep up with your monthly premium payments, you’ll be covered until your policy ends. 

• Do you need a medical to get Life Insurance?

  Not with FRANKLi. There are no medicals or blood tests required, we will only ask you a few health and lifestyle questions. 

• What does Life Insurance cover me for?

  FRANKLi Life insurance covers death by any cause from day 1 of your policy (except if death is the result of self-inflicted injury in the first 12 months).

  If you are diagnosed as terminally ill with less than 12 months to live by a medical specialist, your full benefit amount will be paid in advance.

• Is there anything Life Insurance doesn't cover me for?

  If you lie or omit information when making an application for life insurance, your policy will no longer be valid. If you miss two consecutive monthly premium payments your cover will stop. You are not covered for death outside of your policy term, which means when your term is completed, your cover will stop. Your policy has no cash-in value at any point. You should also bear in mind that the benefit amount will not be paid if the life insured dies or is diagnosed with a terminal illness that is caused by an intentional self-inflicted injury. This applies if that self-inflicted injury occurs in the first 12 months of the policy. 

• How much does Life Insurance cost?

  The cost of Life Insurance varies from person to person and depends on a few factors including your age, your current health status and your smoker status. Your chosen benefit amount, chosen term and whether or not you decide to go for the Increasing Benefit Option will also affect the cost of your monthly premiums. For example, you could get £100,000 worth of cover for as little as £4.84 per month (this rate is for a 32-year-old non-smoker over a 10-year term).

• When should I get Life Insurance?

  There is no definitive answer to this. The right time to take out Life Insurance will depend on your individual circumstances and whether you think your loved ones could benefit from financial help should the worst happen. However, it's important to note that generally, Life Insurance policies are cheaper the younger you are at your policy start date.

• How much Life Insurance cover do I need?

  Striking the right balance to make sure you don’t over or under insure yourself might seem tough, but we’re here to help. With our FRANKLi Life Insurance calculator, you can work out exactly how much cover you may need. Just answer a few questions and we’ll do the hard part for you.
  It’s important to choose a benefit amount that is high enough to help cover the bills and any other future needs of your family, while also making sure you can afford to pay the regular monthly premiums without it being a strain on your finances. 

• How will I know if I have enough Life Insurance cover for the future?

  When you’re choosing a benefit amount, remember to factor in the effect that inflation will have on it. Whatever amount you choose now, the purchasing power of it might be a lot lower in 10 years’ time. One possible way you could protect against the effects of inflation is by choosing the Increasing Benefit Option which will increase your benefit amount annually in line with the Retail Prices Index (RPI). This goes up to a maximum increase each year of 10%.  It's important to note that your premiums will also increase by 1.4 x the rate of the benefit amount until the policy is finished.

• How do I help protect my policy from inflation?

  To help protect your policy from the effects of inflation, FRANKLi offer increasing term life cover. As the name suggests, in order to help keep pace with inflation, your benefit amount will increase each year in line with the Retail Prices Index (RPI), up to a maximum annual increase of 10%. Your monthly premiums will also increase  by 1.4 x the rate of the benefit amount increase until the end of the term.

• Do I need Life Insurance for a mortgage?

  Some mortgage providers insist that you have mortgage protection in place whilst others don’t. However, whether it’s a requirement for your provider or not, Life Insurance could make all the difference to your loved ones should you pass away unexpectedly, since your family could struggle with mortgage repayments without protection in place. 

• Do I need Life Insurance if I have 'death in service' cover?

  Death in service cover is paid out by some employers if you pass away while you’re still an employee. If you die while on the payroll, your loved ones will receive a lump sum that’s often worked out based on the amount you earn. Death in service cover may not be enough to cover any household bills, debts, or maintain your family’s lifestyle should you pass away.

  
  It’s important to note that if you were to leave your job for any reason, you may no longer have the protection of your death in service benefit in place. That’s why you may also want to consider taking out Life Insurance - you can buy it anytime and keep it whether you’re working or not. 

  
  With Life Insurance in place, you can have some peace of mind knowing that your loved ones are protected. So if the worst were to happen, life can carry on. 

• How long do I pay my monthly payments for?

  When you’re taking out your policy, you will choose a policy term. This refers to how long you want your cover to last.  A policy term can be between 5 and 40 years however it must end by the policy anniversary on or following the attainment of age 89.  You will then pay the agreed monthly premium until your policy term is completed. If you miss two consecutive monthly payments, your cover will end.

• What happens if your cover term has finished?

  When your cover term has finished, the policy ends and you won't get anything back. If your policy has finished or if it has been cancelled, we won’t pay a claim. If you would like to continue protecting your loved ones, you can apply to take out a new policy. 

• Is Life Insurance more expensive for smokers?

  Smokers could pay more for Life Insurance. This is because smokers are generally more at risk of dying younger than non-smokers are. This makes them more likely to make a claim on their Life Insurance policy, so they may be charged more to reflect the greater risk to the insurer. 

• What is the difference between Life Insurance and life assurance?

  Life Insurance and life assurance are both types of protection that pay out if the policyholder were to pass away. There is a key difference though: Life Insurance is only designed to cover the policyholder for a set term, while life assurance typically covers the policy holder for their entire life. 

• What's the difference between health insurance and Life Insurance?

  Life Insurance is designed to help protect your loved ones should you unexpectedly pass away. If you die during the policy, your loved ones would receive a lump sum that could help them to keep up with household bills, outstanding debts and loan repayments, so they can carry on with life as you would want it.

  
  Health insurance is generally designed to pay for medical expenses and treatment costs that you incur. There is no life cover, meaning there is no payout on death.

• What's the difference between level and decreasing life cover?

  Level cover will provide the same amount of cover throughout the term of your policy. You’ll pay a fixed monthly premium and as long as you keep up with payments, you’ll be protected during the term. If you die outside of this term, there will be no payout. Generally, level cover is a bit more expensive than decreasing term.

  
  Decreasing cover is exactly that. The amount of insurance reduces over time, roughly in line with the way a repayment mortgage decreases. With FRANKLi Mortgage Life Insurance, as your outstanding mortgage amount decreases, your benefit amount will also decrease over your policy term based on a fixed mortgage interest rate of 8%. When your mortgage is paid off, your cover ends. Your monthly premiums will stay the same for the policy term. 

• Can I get Life Insurance if I have a pre-existing condition?

  If you have a pre-existing condition, it’s still possible to get Life Insurance cover. However, some medical conditions may affect your ability to secure Life Insurance more than others and every individual is different. If you would like to find out more about your eligibility, it may be best to speak to one of our friendly UK based team for some guidance. 

• Can I have more than one Life Insurance policy?

  Yes, you can have more than one Life Insurance policy. You may prefer to have one Life Insurance policy that can meet all your needs, or you might find it suits you better to have more than one policy. It depends on your circumstances and what you want your policy to do for your family. 

  
  We understand that your circumstances might change later in life. Whether it’s having a child, buying a home, or any other big life events, you could find yourself reconsidering your insurance arrangement. That’s why FRANKLi offer flexible life cover. You can apply to increase or decrease your benefit amount for free, so you can make sure your cover keeps up with your lifestyle.

• Can I claim on my policy for a terminal illness?

  If you are diagnosed with a terminal illness by a medical specialist and your life expectancy is less than 12 months, you can make a claim on your Life Insurance policy. That means you can have some peace of mind in the last months of your life, knowing you and your loved ones have a financial cushion to fall back on during a difficult time.

• Do I get any money back if I don't die by the end of the policy term?

  If you outlive your policy term, your cover will end and you will not get any money back from your policy. There is no cash-in value of the policy at any point in time.

• How are monthly premiums calculated?

  How much you pay on your monthly premiums depends on the following factors:

  • Your benefit amount
  • Your health and lifestyle
  • Your age when your policy starts
  • The length of your policy
  • Whether you choosing an increasing or level policy

  Our life insurance calculator can help you to work out how much cover you might need to help protect your loved ones.

  Life Insurance Calculator
• What happens to my policy if I miss payments?

  If you miss two consecutive premium payments your plan and cover will end. You won't get back any premiums you've paid.

• Who will get the money from a Life Insurance claim?

  Who we pay out the lump sum to when you die depends on how you set up your Life Insurance policy. If you're the policy owner and also the person insured, the money will go to your estate so it will pay out to your legal beneficiary. You might choose to place your policy under a trust, which will allow you to name the people who you'd like to receive the money in the event of a claim. With a trust, your Life Insurance may not be counted as part of your estate and may not therefore be liable for Inheritance Tax.

  
  When the time comes to make a claim, we’re here to make it as simple and hassle-free as possible. Your loved ones can give us a call or fill in our online form and our experienced team will guide them through the process with sensitivity and care.

• What does it mean to put a Life Insurance policy in trust?

  To put your policy into a trust you need to choose a trustee, that’s a loved one or family member, that will manage your trust until the time comes for it to be paid to your beneficiaries. Usually this is when you pass away or on a specific date, like a birthday. It’s a straight-forward way to ensure you leave your assets to your chosen beneficiaries. It could also help you to avoid your payout being subject to inheritance tax.

  One of our friendly team can help you put your FRANKLi Life Insurance policy into a trust today, find out how and get more information here. Before putting your policy into a trust, please speak with a financial advisor or solicitor who can give you additional information and guidance.

• When should you update your Life Insurance policy?

  You should review your Life Insurance regularly. Your policy can protect you and your loved ones for years, so it’s important to make sure that your cover keeps up with any big life events and changes that have happened since you first applied. 

• How do I make a claim on my Life Insurance policy?

  If you have been diagnosed with a terminal illness by a medical specialist and have less than 12 months to live, you may want to make a claim on your life insurance policy. 

  
  Our experienced team are here to make it as simple and hassle-free as possible to make your claim. Simply give us a call or fill in our online form and one of our experts will guide you through the process with sensitivity and care. 

• How does my family make a claim on my Life Insurance policy?

  When the time comes to make a claim, we’re here to make it as simple and hassle-free as possible. Your loved ones can simply give us a call or email and our team will guide them through the process with sensitivity and care.
  Our team of experts will review the claim and keep your loved ones up to date throughout the process. If any more information is needed, our team will be in contract right away. 

  Our policy pays out on successful claims for death or if you are diagnosed with a terminal illness with less than 12 months to live.

• When will my Life Insurance policy pay out?

  Your policy will pay out after a successful claim for death or a diagnosed terminal illness with 12 months or less to live has been made.

• What information do you need to make a Life Insurance claim?

  To make a claim, you’ll need the following information:

  • The name of the deceased
  • The cause of death and death certificate
  • The life insurance policy number
  • Who you are and your relationship to the deceased
• Why might a Life Insurance claim not be paid?

  At FRANKLi, we aim to pay as many Life Insurance claims as possible, but unfortunately there are some that we can’t pay. This is largely due to a misrepresentation of information when making an application, and not meeting the policy definition.

  
  When important information is omitted, misrepresented, or missed when making an application for a Life Insurance policy, a claim may not be valid. This is because some information could have meant that you would not have been able to take out a Life Insurance policy with us, or if you had, it may have been with an increase to your premiums.  An example of this is not telling us that you’re a regular smoker when completing your application. 

  
  If a claim is made but it doesn’t meet the terms and conditions of the policy definition, then it might not be successful. Make sure to read your policy details fully when taking out life insurance. 

• Can I cancel my policy if I no longer need it?

  Yes, you can cancel your policy at anytime. You have a 30-day cooling-off period from the date you receive your policy to make sure you're happy with your cover. If you're not, and you choose to cancel within that 30-day period, you can get a full refund as long as no valid claim has been made.
  
  If you cancel your policy after your 30-day cooling-off period, you will not get back any of the payments you made. It's also important to note that there is no cash-in value for your policy at any time.

• Are Life Insurance payouts taxed?

  While there isn’t a specific UK tax that affects how a Life Insurance policy pays out, your policy could be subject to inheritance tax (IHT).

  
  Inheritance tax is due on the value of the individual’s estate above a threshold of £325,000 if you’re single or divorced, or over £650,000 if you’re married or widowed. Typically, life insurance is taken out to help offer financial protection to your loved ones should you pass away and usually will form part of the individual’s estate for IHT calculation. So the lump sum that would have been used to give your loved ones a financial cushion could be greatly reduced.

  
  When a successful claim is made and the policy is paid out to the estate, it could be subject to an inheritance tax requirement.
  
  You may be able to avoid inheritance tax by putting your Life Insurance policy into an appropriate trust. Before doing so, please speak with a financial advisor or solicitor who can give you additional information and guidance.