Life insurance can offer you peace of mind that your family will be financially stable should you die. It could help repay your mortgage or cover your children’s expenses and future university fees.
Yet with so many options and insurers out there, it can be hard to work out which policy you should go for. So we’ve analysed one major provider, Smart Insurance, to help you wade through the options and find the ideal deal for you.
What is Smart Insurance?
Smart Insurance is a company that specialises in life insurance products, and it says its aim is to make getting coverage as simple as possible.
One way it claims to do this is by getting you to call to sign up instead of filling out online forms.
If you choose to buy a policy with Smart Insurance, its policies are provided by Scotland’s longest-standing life insurer.
Scottish Friendly Assurance Society Limited has been providing life insurance for over 150 years.
What types of life insurance does Smart Insurance offer?
Smart Insurance has a couple of different types of life insurance policies to choose from.
Both the Family Life Insurance and the Guaranteed Life Insurance plans will help your loved ones cope financially if you die, but there are some pretty key differences.
This is Smart Insurance’s more comprehensive life cover option. It will pay out a benefit of up to £750,000 in the event that you die – or if you are diagnosed with a terminal illness.
If your heart is set on a Family life insurance plan, you will also have to decide whether you want the price of your premiums to be linked to your age or to stay level throughout.
Age-based Family Life policy While the premiums may seem cheap at the outset, they are tied to your age and will gradually increase. On the plus side, as this is a “whole life” policy, you know it will definitely pay out at some point – provided you keep your payments up of course. Another potential advantage over the level premium choice is that your benefit (the amount the policy will pay out) automatically increases each year by 5%.This makes it potentially more resistant to inflation, but the premiums rise accordingly.
Level Family Life policy The second form of Family Life policy Smart Insurance offers will charge you a set premium each month. It will stay the same year in, year out. As it’s a “term life” policy, you can only get coverage for between 10 and 40 years, so there’s no guarantee it will pay out. If you’re looking for a more affordable option to protect you while your kids grow up and you pay off your mortgage, this might suit you.
This is Smart Insurance’s second type of life insurance. Unlike with a Family policy, there are no medical or health questions whatsoever.
If you have any pre-existing medical conditions that have made it hard to find protection, this could be the policy for you.
However, the maximum payout is only £20,000 (or £60,000 for accidental death.)
Optional add-ons
Critical illness cover is available with a Family policy. This will pay out a lump sum if you are diagnosed with a condition that your policy deems critical, such as a heart attack or stroke.
Critical illness cover for children is available with a Family policy as well. This will give you financial help if one of your children falls seriously ill.
Taking out accidental death protection cover as an add-on with a Family policy will mean your family gets a higher payout in the event you suffer an accidental death.
The Family Life Insurance plan has a respectable Defaqto rating of four stars.
Age-linked premiums could save you money if you only want life insurance protection while you’re young.
The company that provides its insurance, Scottish Friendly, paid out 99.4% of all life insurance claims in 2018.
You can get 10% cashback of your first year’s premiums with a Family policy.
Drawbacks of Smart Insurance life insurance
You should be wary of its Guaranteed policy. If you’re under 50, you’ll generally get lower premiums with a plan that asks medical questions.
The Guaranteed policy won’t pay out for any non-accidental deaths within the first two years of your contract.
As with most life insurance policies, if you stop paying your premiums, you won’t get any money back and your cover is likely to stop.
Smart Insurance exclusions
The reasons Smart Insurance might refuse to pay out will depend on your policy. The following are some key exclusions:
Failure to answer questions honestly and accurately when signing up could invalidate your policy
Any terminal illness that was caused by a self-inflicted injury within 12 months of the policy starting
Any illnesses or conditions not named in your policy
Any illnesses diagnosed before the policy starts
Any accidental death caused by the consumption of drugs or alcohol
Any accidental death caused while playing professional sport
What’s the claims process for Smart Insurance life insurance?
You can claim by phone (0800 458 6901) or by email (claims@smartinsurance.co.uk). Having relevant information such as the policy number, doctors’ contact details and proof of death to hand is a good idea.
Frequently asked questions
This will depend on several different factors. The type of insurance you sign up for and the level of cover you require are two big ones.
Personal details, such as your age, health, job and whether you smoke, could affect your premium costs as well.
Really searching around and comparing a number of providers will help you find the best possible deal though.
Yes and it won’t charge you any administration fees. You can increase or decrease your level of cover to suit your circumstances.
If you move into a bigger home or if your children grow up and move out, you may want to discuss this with Smart Insurance. You should also tell Smart Insurance about any lifestyle changes, such as quitting smoking. It could well lead to lower premiums.
Life insurance payments are currently free from income and capital gains tax for UK residents but may be subject to inheritance tax depending on the value of your estate. It’s also worth noting that tax rules could change in the future, which might affect the tax implications on your payout.
If two consecutive monthly payments are not paid, Smart Insurance will end your policy without paying you a dime. While it says it may reinstate your policy if the premiums are then made in full, it is at its own discretion. In other words, the insurer may well refuse to restart your cover.
The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Esther Wolffowitz was a publisher at finder.com specialising in insurance. Esther holds an MSc in Media and Communication Governance from the London School of Economics and Political Science (LSE). See full bio
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