Life assurance options

Our life assurance can repay all or part of your business loan or mortgage if someone dies or becomes sick or disabled.

Our life assurance options help to protect your business and your family

Life assurance, or life with earlier critical illness benefit, benefits the business by paying out a lump sum if an essential person (the person insured) dies, is disabled or is diagnosed with a critical illness.

Although the pay-out goes to the business, it offers real peace of mind to the insured person because it means their family won’t need to repay banks and other lenders, who may want to call in any business loans or mortgages. This might be difficult enough, financially, without also coming at a particularly stressful time for the family. (Sometimes, the provider of business loans or mortgages will insist that this sort of life insurance is taken out, making it a condition of the loan; they may even request that the benefits go directly to them.)

How life assurance works

We offer 4 options:

  • Option 1: Life assurance only
  • Option 2: Life with critical illness insurance
  • Option 3: Mortgage protection insurance
  • Option 4: Income protection insurance

These are all detailed below. The policies are taken out by an individual in order to cover business debts; however, the benefits don’t go to the business (if that’s what you want, see our key person insurance). Instead, any pay-outs go directly to either:

  • a business creditor (such as a bank or mortgage lender)
  • OR to the individual or their family (who can use the pay-out to settle any debts due to the bank or mortgage lender, and then keep any remaining balance).

Because we’re an independent broker, we’ll go to the market to find the right insurer and the right insurance policy for you, at the right price. Terms & conditions will vary, according to the insurer, but we’ll discuss your best options with you. Please contact us for an initial, no-obligation chat.

Life assurance only

Life assurance will pay out a lump sum following the death of the person whose life is insured.

  • This is a fixed-term policy – usually between 5 and 40 years, depending on how old the person is when the policy is taken out
  • The premiums can be guaranteed for the full term of the policy, so they won’t increase
  • You can also add critical illness cover to a life-only policy (see below) – which has the benefit of protecting you and your family in life, not just in death.

Life with critical illness insurance

This cover pays out a lump sum following the death of the person whose life is insured, or if they are diagnosed with a serious illness (such as cancer or a heart attack). This insurance is usually added on to an existing life assurance or mortgage-protection plan. It means paying an additional premium, but for a higher level of protection.

  • The policy term (number of years) is fixed from the start
  • The amount which would be paid out is agreed at the start of the policy
  • The premiums can be guaranteed for the full term of the policy, so they won’t go up.

Mortgage protection insurance

Mortgage protection assurance will cover your business mortgage payments following the death of the person whose life is insured.

  • The level of cover goes down by a pre-agreed amount each year (which is why this type of cover is also called ‘decreasing term insurance’)
  • This is a fixed-term policy – usually between 5 and 40 years, depending on how old the person is when the policy is taken out
  • The premiums can be guaranteed for the full term of the policy, so they won’t increase.

Income protection insurance

Income protection assurance will pay out a monthly income if the person insured can’t work because they’re sick or become disabled. It’s particularly popular among people who are self-employed.

  • The insured person will receive a monthly income until they can return to work, they reach retirement age, or they die
  • The cover is based on a percentage of the individual’s annual income (including benefits) – usually 50%*
  • The monthly income payments can be fixed, or index-linked to increase by a fixed percentage each year
  • You have the option to fix your premiums throughout the policy term, regardless of your claims history, so they won’t go up.
  • Payments are deferred for a pre-agreed period; during this time, you’ll be expected to cover your loss of income from other sources.

* If self-employed, your income is your trading profits for the last tax year.

Our customer’s are at the heart of what we do:

No two businesses are the same. That’s why we don’t start with the policy we start with you. We’ll find out what matters to you and then search the insurance market to find the right cover.

What makes Christie insurance difference?

Buildings

Protect your property plus its fixtures & fittings

Business Interruption

Covering loss of income if you have to suspend trading

Contents

Taking care of your stock, furnishings & equipment

Employer's Liability

In case of compensation claims for employee injury or illness

Public Liability

In case of injury to a member of the public or their property

Find out more about business insurance