
Taking Out Insurance
Who can apply for Virgin life cover?
If you’re a UK resident aged between 18 and 64, you can. By UK resident we mean someone who is permanently resident in the United Kingdom of Great Britain and Northern Ireland (excluding the Channel Islands and Isle of Man).
It depends on your personal circumstances. Some things to take into account are:
- how much your family would need to support themselves without your salary
- the size of your mortgage and how long it’s got to run
- any other outstanding debts you have
Or another way to approach it is to think how much you want to pay each month. Put that in our Quick Quote and see how much cover you’d get for your money.
How long should I get cover for?
Most people usually take out their insurance until some key date in the future. It could be when they intend to retire, or when their mortgage is paid off, or their kids grow up and leave home. Work back from that date to now, and that will help you decide the number of years you need to be insured for.
Yes. As long as your application is okayed, we can start your cover straightaway. Or you can set it up for some time in the next 3 months. Or if, for example, you’re waiting on a mortgage completing, you can put your cover in place, then tell us your start date when you know it.
You bet. If you’ve got a repayment mortgage, we can set up your cover so it reduces during the term, similar to the way your mortgage goes down, which will make your premiums cheaper. (Just so you know, we base decreasing cover on the assumption that a repayment mortgage has a yearly interest rate of 10%. Which should be to your advantage, as long as your mortgage rate is below 10%)
If you've got an interest only mortgage, your mortgage amount stays the same until you repay it all at the end. Level cover is designed to cover this type of mortgage.
If you’ve got a mix of both these types of mortgage, just give us a call.
Even better. If you take out ‘joint life’ cover with most companies, once one claim is made the policy normally ends. But with Virgin Life Cover, when you apply and pay for your cover together, as well as getting a discount, you also each get your own ‘pot’ of cover, so if one of you makes a claim, your partner’s cover remains untouched.
By monthly direct debit.
Jargon Buster
If you’re buying a house, Virgin Life Cover comes with free life insurance of up to £250,000 that covers you between exchange of contracts (or if you’re buying in Scotland, from the date the missives are concluded) and mortgage completion. That way you’re protected but won’t have to start paying for your insurance until your mortgage starts.
Sorry but free life cover doesn’t apply to remortgages and doesn't provide cover for terminal illness.
What do you mean by ‘terminally ill’?
If you’re diagnosed as being expected to die in the next 12 months, or before the end of your policy, whichever is sooner. If this were to happen we’d pay out your full cover amount. But just so you know, you can't make a terminal illness claim during the last 18 months of your cover term.
Life cover claims
If you’ve been diagnosed with a terminal illness, get in touch with us and we’ll help you fill in a claim form and contact your doctor for all the info we need.
If you die your family or estate should call or write to us as soon as possible, and we’ll let them know what we need to sort out the claim.
Can I choose who gets the money if I die?
Sure thing. You can do this by filling in a trust form. By putting your policy under trust, if you died any life cover pay-out would go straight to those you want, quicker and with less fuss. It would also protect the pay-out from inheritance tax (under current tax rules). If we haven’t sent you a trust form and you’d like one, just give us a shout.
If you’re applying for Virgin Life Cover with a partner, you both jointly own each policy so any pay-out would automatically go straight to your partner, without you having to put it under trust. If you're considering inheritance tax planning though, you might want to speak to a solicitor about how best to set this up.
Both terminal illness and life claims are paid tax free but in some circumstances inheritance tax may be payable. You can normally avoid this by putting your plan under trust.
Other stuff
Can I change my cover in future?
Yes. When things like kids, a new mortgage or job change come along, just give us a call and we’ll help you sort it out.
Can I cancel the policy at any time?
Yes, you just have to tell us. But once you cancel your direct debit payments your cover will stop. You won't be insured and no money will be returned to you.
No, your monthly payments for Virgin Life Cover will stay the same.
Do I get any money back if I don't die before the end of the term?
Afraid not. The policy provides life and terminal illness cover only and there’s no cash-in value. At the end of your policy term, you stop paying premiums and your cover ends.