Do I get a refund if I don’t die during my policy term?
Summary: Life Insurance provides financial support for your loved ones by paying a lump sum when you die. This sum could allow your family to maintain their standard of living, pay household bills, cover funeral costs, and support them while they are grieving. If you survive your policy term, you will not receive a refund for the money you have paid in monthly premiums. This is the same for both single and joint policies.
Beneficiaries of your policy
Your chosen beneficiaries will receive your life insurance payout if you die during the term of your policy. You will decide on the length of term, cover amount and policy type when you set up your policy. Customers can either choose to name beneficiaries in a free simple Will or put their policy in trust.
A simple Will is a Will that leaves an estate to a maximum of six beneficiaries without the use of trusts or tax planning. We do this to ensure our customers wishes are captured, giving them the peace of mind that their payout is distributed to their loved ones in the way they intended.
Our Trust tool can help your family avoid a potential tax bill of 40% if your estate is valued at more than £325k. It also gives you a say in who manages the proceeds from your policy.
Your policy pay out
If you have included Critical Illness cover in your policy and are diagnosed with one of our listed critical illnesses during your term with us, you will be able to make a claim. The addition of Critical Illness Cover will be included in your monthly premium payments. If you do not need to make a Critical Illness claim during your policy, we will not refund this.
The same logic applies to the addition of Child Critical Illness cover. If your child or any future children were to fall ill with one of our listed critical illnesses during your cover, you will be able to make a claim.
Child critical illness cover is equal to 25% of your policy up to a maximum sum of £25,000 and can help remove financial stress if you needed to take time off work to care for your child or fund any equipment or treatment. The money paid towards Child Critical Illness cover would not be refunded if none of your children required the support during your policy.
Our terminal illness cover allows you to claim for an early payout of your life policy if you are diagnosed with a terminal illness with less than 12 months to live and have more than 12 months remaining on your policy. Terminal illness cover is included as a free benefit for all Beagle Street customers and is designed to help you put your affairs in order and spend your final days focusing on what is important, rather than financial worries.
Decreasing vs. level term life insurance
At Beagle Street, we offer two types of life insurance cover. We offer Level term and Decreasing term cover.
Level term life insurance pays out a fixed sum of money upon your death and that sum does not change throughout the duration of your policy. This means you know exactly how much your loved ones would receive if you were to pass away. This type of cover is suited to covering fixed costs such as household bills, mortgage repayments, loans, and extra cash.
Decreasing term life insurance is best suited to covering large debts that go down over time, such as a mortgage. The amount of cover you have with a decreasing term policy decreases over time. These policies are more affordable than level term policies but can still ensure that your family are protected.
Regardless of your policy type, you will still pay a fixed monthly insurance premium that does not change throughout your policy term. You will not receive a return of premiums paid if you do not pass away during either policy type.