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Life Cover guide for IT contractors

Published on Dec 15, 2009 |

It's not a subject that we like to think about but it is important to protect any dependants in the event of the worst.

As a contractor you miss out on the life cover offered by a large employer so it is vital that you put a plan into place to secure your families future should you die.

We have teamed up with our long-term partner IFA, Contractor Financials, to help you find the right insurance to suit your individual needs at an affordable price.

You can get a contractor life cover quote by filling in the form at the end of this guide.

There are two main types of life insurance:

Term Cover

Term cover offers an inexpensive protection policy that lasts for a given period and will end when the agreed term is finished.

Whole of life Cover

If you want to cover yourself for death at any age then a Whole of Life policy could be the answer. Despite being slightly more expensive than a Term cover policy, it is often popular with Freelancers because of the long-term cover that it provides.

FreelancerMoney can recommend a variety of life cover policies which can be used in various ways:

Level term assurance plan

Pays a set lump sum to your dependants that they can then invest to gain an income. The value of this lump sum can be affected by external influences such as interest rates or inflation that reduce the amount of income.
Covers you for a period in your life i.e. for when you have dependent children (e.g. until they are 18 or 21)
Saves your family from being left with your debts by protecting loans or a mortgage.

Decreasing term assurance plan

Pays a steadily reducing lump sum depending on when death occurs through the term of the plan. Can be used to provide funds to help settle a repayment mortgage if you die.

Family income benefit plan.

This policy will provide a set income over a predetermined term so that your family will have help with the bills etc.
Your total payout will differ according to how far into your policy you are i.e. if you claim early on then the overall payment will be larger than if you claim at the end of the policy because the number of annual payments made would be less. If you are looking for a set lump sum regardless of when a claim is made then a level term may be better suited to your needs.
Avoids the need for relatives to worry about investment of a lump sum.

Whole of life policy

This life insurance covers you for the whole of your life and is useful if you don't want a policy to have an end date. The policy can be backed up by investments that build up over the life of the policy to ensure that premiums are kept more manageable as you get older.
Prices can be competitive if you take the policy out early and with an investment linked plan you have the option to take out a cash lump sum if the plan is cashed before you die. Please note that investment plans can increase and decrease in value throughout the life of the policy.

Get a Contractor Life Cover Quote

Contractor Financials are Independent Financial Advisers regulated by the FSA so they are able to search the whole of the market to find the best cover for your needs. They only work with insurers that have a history of paying claims and offer an affordable cover for Contractors for the duration of the policy.

To find out more fill in our protection finder below:

Contractor Life Cover Protection Enquiry Form

(* = Required Field)

Financial advice is given by Contractor Financials, which is a trading name of Contractor Financials Ltd and is regulated and authorised by the Financial Services Authority.

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Your Name*

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Date of Birth

Sex	Male Female

Smoker?	No Yes

Cover Required (Check one box)	LTA (Level Term Assurance) DTA (Decreasing Term Assurance) WOL (Whole Of Life) FIB (Family Income Benefit)

Amount of Cover Required (In 000's)

Term (In Years)

Inflation Proofed?	No Yes

Waiver of premium?	No Yes

If joint cover is required, please enter partner's details below, else click on "Submit".

Partner's Name

Date of Birth

Sex	Male Female

Smoker?	No Yes

Waiver of premium?	No Yes



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