Polly Life Insurance: Everything You Want To Know

Polly Life Insurance's mission is to protect as many families as possible from the serious financial consequences of a loved one's death.

10 min read
By Prerna
Polly Life Insurance
Photo by Sean Roy / Unsplash

Let's be honest: dying stinks. Nobody wants to die, let alone think about it. But that is precisely the issue. Consider the emotional journey a child or parent would go through if someone on whom they relied both emotionally and financially died.

Consider them in the same situation, but without the financial stress. How much less complicated would that journey be?

Every 22 minutes, a child loses a financially dependent parent. More than 12% of UK mothers do not have life insurance to protect their families if the worst should happen. There was a problem, but no one talked about it, so Polly was launched.

Polly Life Insurance's mission is to protect as many families as possible from the serious financial consequences of a loved one's death.

Polly Life Insurance believes that reaching out to as many mothers as possible and providing a safe place for mothers to get quotes from vetted, FCA-authorized brokers and insurers will help them achieve this goal. Since its inception in 2015, they have assisted over 50,000 UK mothers in protecting their families through affordable life insurance.

What Is A Life Insurance?

Life insurance acts as a safety net for your loved ones. It provides a lump sum of money to your loved ones if you die before the term of your policy expires, assisting them financially during an already stressful and emotional time.

Often, the proceeds from life insurance are used to pay off a mortgage or rent, pay for a funeral or childcare, or relieve financial stress on those you leave behind.

Three factors determine the cost of your life insurance.

1. How long do you want to be protected? 2. How much do you want the policy to pay out in total.3: your age, smoking status, and overall health.

When determining your coverage amount, consider how much money is left to pay your mortgage, rent, a funeral, childcare, or any other financial burdens your loved ones would face if you died.

How does life insurance work?

In the event of your death, life insurance protects your family. As a result, life insurance is also referred to as death insurance. Your health and lifestyle determine the amount you can pay for coverage. You can use the tax-free lump sum payment from life insurance to pay off your debts (such as a mortgage, loan, or credit cards).

The money will also provide your family with a regular source of income, allowing them to continue living the life they were accustomed to while you were alive.

The Best Life Insurance For You

1. When you die, your loved ones will receive a tax-free lump sum of money. You can purchase protection for a specific number of years (Term Life Insurance) or buy a Whole of Life policy.2. Your premiums will be paid every month, and you can select a policy based on your financial situation.

3. Polly searches the entire UK life insurance market to find you an affordable plan tailored to your specific needs.

What are the types of life insurance covered?

There are many types of life insurance cover you can choose to protect your finances; these include:

  • Level term life insurance
  • The whole Life insurance
  • Decreasing term / mortgage protection insurance / payment protection insurance
  • Joint life insurance
  • Family Income Protection
  • Critical illness insurance (life insurance and critical illness cover can also be bought as one policy package)
  • Income Protection Insurance
  • Over 50s Life Insurance (a type of no medical life insurance to cover funeral costs and cash gifts for loved ones)

Do I need Life insurance?

You are not required by law to have life insurance, but if you have people who rely on your income (such as a child or a partner), it is highly recommended that you have a financial safety net in place. Consider whether you have the following to assist you in making your decision:

  • You have a mortgage
  • You have outstanding debts such as unsecured loans, credit cards, car finance payments
  • If you would like to cover the cost of your funeral and not pace the financial burden of this on your loved ones
  • If you are a stay-at-home parent and your partner would need to pay for nursery or childcare costs in the event of your death
  • If you are single and have a significant asset, like a property, you could be passed on to a loved one in your will. The money could cover the cost of putting that property on the market if they wished to sell it after you're gone.

What does life insurance cover?

In the event of your death or inability to work, life insurance can pay for your living expenses and debts (see life and critical illness cover for more information).

A one-time payment or a steady source of income (see family income benefits for more information). The fees help your family and beneficiaries on your will after you die.

How much does life insurance cost?

Life insurance is a complex product that considers many factors to determine how "at-risk" you are of dying during your policy term.

When applying for life insurance, factors such as your general health, lifestyle (whether you smoke or participate in high-risk hobbies such as mountaineering), and how much you will pay in premiums will be considered.

Services Provided By Polly Life Insurance

The Whole Life Insurance

Most people envision this type of policy when they think of life insurance. A whole life insurance policy protects you until the end of your life. There is no set term limit, and the tax-free lump sum will be paid out to your loved ones at the end of your life if you have paid your premiums on time.

The whole of life policies is frequently linked to your investment reserve at the start of your policy. This can help you subsidize the premium payments you'll have to make as you enter retirement and stop working.

If necessary, you can also use your Whole of Life Policy to pay off any inheritance tax bill in advance.

Critical features of Whole of Life Insurance

  • Provided you keep up your monthly payments, this policy will pay put upon your death, whenever that may be.
  • Your inheritance tax bill is sorted in advance with this type of policy, and this prevents delay in getting the payout to your loved ones when you die
  • This policy can be reviewed at intervals of, say, ten years. If your investment hasn't grown during this time, you may be able to cash out the investment proportion of your policy and close down the cover. You can also choose to keep the policy going and pay more towards premiums as you age.
  • You can also choose to fix your policy payments and opt out of the investment proportion of your plan, and these are called Non-profit Whole of life policies
  • If you choose an investment, for-profit whole of life policy, if your investments perform well, you may be able to add a bonus to the sum assured at the end of the policy. However, profits are not guaranteed.

Level term insurance

This protects you over a specific period (such as 10 or 20 years). If you die during this period, the moment will be paid to your beneficiaries as a cash lump sum.

This money is not refunded if you do not die within the term. Many people may find this level term assurance firm an affordable option. This policy can be paid for with monthly premiums. However, if you die before the level term is over, you will not be delivered or have your money refunded.

Key Features of Term Life Level Term Insurance

  • Can work out cheaper in premium payments than other forms of insurance such as Whole of Life.
  • You decide the amount you need to pay pout upon your death
  • You get cover fast – if you pass away within six months of opening a policy and you sadly die, you can get the whole sum of the policy paid out, provided you kept up with your premiums and the outcome of your claim is approved by your insurance provider.
  • Premium payments are fixed at the time you take out the policy. Therefore, the younger and healthier you are when you take out cover, the cheaper your premiums could be.

Decreasing Term Life/ Mortgage Life Insurance

A decreasing term life insurance policy can be an affordable option for mums to ensure that they can get their significant mortgage debts cleared should they pass away unexpectedly. Unlike level term life insurance, these policies are designed to pay out a lower lump sum as your term progresses.

The money is also exclusively earmarked to cover your mortgage. Rather than offering a payout, you can leave it to your will beneficiaries. Also, like with term life insurance, your premium payments can be fixed when you apply.

Critical features of Decreasing Term Life Insurance

  • Your mortgage is paid in the event of your death if you pass away during the policy term
  • Premium costs may be a cheaper option for those looking to ensure their significant debts are paid off.
  • It may not be suitable to take out a policy if you have a specific type of mortgage, such as an interest-only mortgage. Please speak to an advisor for more information on your policy option.

Joint Life Insurance

A joint life insurance policy may be an affordable option if you have a spouse or long-term partner. Your premium payments for a common life insurance policy go toward protecting both of you for the duration of the policy term.

When the first person named in the policy dies, the full lump-sum payment is made, not both parties. You can, however, find a policy that will pay out if the second person named in the policy dies.

This could be a good option for those thinking about leaving an inheritance. Please keep in mind that these policies only provide a single lump-sum payout. If you need extra coverage after the end of a standard term policy, you may want to look to take out a new plan.

Key Features of Joint Life Cover

  • Joint policies can be an affordable option for couples looking for more manageable monthly premium payments
  • You only have to fill in the paperwork once, and you are covered. This can be a convenient option for some
  • If you divorce or the relationship breaks down, in some cases, the policy can be split into single life insurance policies.
  • Be sure to check that each partner has the right amount of cover they need for their specific circumstances.

Over 50s Life Insurance

Specialist life insurance policies may be a good option for those over the age of 50 who have already paid off their mortgage and debts and want to leave something behind for their loved ones to help cover the cost of their funeral.

Because the amount paid out when the policy expires is more minor, an over-50s life insurance policy is often less expensive than a term life policy.

Many providers do not require a medical exam to sign up, and your premium payments are also fixed for the term (in many cases, the policy will pay out until the age of 80).

Critical features of Over 50s life insurance

  • This is an affordable fixed-price option for people approaching retirement age. The total amount payout is also guaranteed after a fixed period (such as one year of making payments). If you pass away within the first year of taking out a policy, the money you have paid may be refunded to your loved ones.
  • Due to inflation, the value of the policy may decrease over time. For instance, if you take an approach out at 50 to cover an £8,000 funeral, in time, the basic costs for the arrangements may increase, and your loved ones may need to cover any extra costs towards it.
  • This type of plan works like a guaranteed life insurance plan with no medical required.
  • It is possible that you can pay in more than what is paid out at the end of the policy.

Frequently Asked Questions

How Does Corona Virus Affect My Life Insurance?

It is important to note that regulations and measures continuously change and develop like many aspects of life over the last year. Therefore, the points in this article are provided for informational use only, and, in many cases, it may be best to check the latest information with an independent financial advisor.

How Has The Pandemic Impacted Taken Out Life Insurance?

Life insurers across the country are taking on new customers every day. Insurers have added just a few further coronavirus-related questions to their sign-up processes in nearly all instances. However, it is also worth noting that some insurers may have introduced new stipulations in some areas due to the pandemic. For example, new applicants who have tested positive within the last 30 days may postpone their application for a set amount of time. Please ask an independent expert and check the policy terms and conditions for more details.

If I Am A New Life Insurance Customer, Will A Policy Still Payout If I Die From CoronaVirus?

There are no exclusions on life insurance payouts if you die due to contracting coronavirus, provided you answered all questions truthfully at the time you applied.

If I Have An Existing Life Insurance Policy, Will It Still Payout If I Die From Coronavirus?

Yes. Currently, no UK life insurance providers have stipulated that they exclude customers who tragically die from contracting coronavirus. The above applies if you have answered the rest of the questions truthfully when making your original application.

If I Have Tested Positive For Corona Virus, Will This Affect My Taking Out A New Policy?

As mentioned previously, you will still be able to take out a new insurance plan in the wake of this pandemic. However, suppose you have tested positive within the last 30 days. In that case, you will be asked further questions about your diagnosis, and your application may be postponed for anything from two weeks to three months, depending on your insurer.

If I Have Self-Isolated Or Been In Close Contact With Someone Who Has Tested Positive For The Virus, Will My Life Cover Be Affected?

Your new life insurance application may be postponed if you have shown symptoms. Likewise, if you are a key worker, you may need to search for an insurer that will be more receptive to your position. It's also possible that some insurers may ask for a medical exam or letters from a medical consultant to move your application forward.

If I Have Lost My Job Due To The Measures And I Am Having Trouble Paying Premiums, Will I Risk Losing My Job?

Under guidance from the UK's financial conduct authority, insurers should offer help to those facing difficult economic circumstances in the pandemic. In this case, don't hesitate to get in touch with your insurer or advisor. In some cases, you may be able to apply for a three-month deferral on premium payments. Or, you may be able to lower your coverage and costs for a set amount of time.

Does My Employer's Life Insurance Cover Me?

Death in service benefits features many employment contracts and refers to a lump-sum payment that may be released should you pass away while employed at a company. This does not mean that you will get the payout if you die at work due to your occupation. This type of family life insurance is an employee perk that can help your loved ones if you part of a range of specific causes while employed within a company.

In some cases, this plan is tied to your employee pension, or some of the best life insurance companies in the UK will offer direct payment to your loved ones upon your death. This is an excellent benefit for employees; however, it may not provide enough protection for your finances.

As with all employee benefits, if you lose your job or are made redundant, you may not be covered by death in service benefits. You, therefore, may wish to take out an additional life insurance policy to ensure that your loved ones are protected regardless of where you work.