Quad Bike Users Need To Consider Life Insurance

Individuals whose work or hobbies involves using all-terrain vehicles or quad bikes should consider covering themselves with life insurance or accident, sickness and employment cover to cater for any eventuality.

The need for this as well as wearing a protective helmet has been brought to light by a case involving the death of a farm worker, whose employer has been fined by the Health and Safety Executive (HSE). Grant Shannon, who was 34, was killed in June 2007 when he was involved in a quad bike accident while working at Kelloe Mains Farm in Scotland, the owners of which were fined 6,650 this week.

With life insurance in place, such an incident would result in any dependants of the deceased getting a lump sum, the amount of which would depend on the level of cover in place. Mr Shannon had only started working at the farm three days before he died, which underscores the need for sector workers to consider cover.

"Less than 1.5 per cent of the working population is employed in agriculture yet the sector is responsible for between 15 per cent and 20 per cent of fatalities to workers in Great Britain each year," said HSE inspector Gillian McLean.

Types of Life insurance
There are three main types of life insurance, term life insurance, decreasing life insurance and family income benefit, all of which can have the option of critical illness insurance as an add on benefit.

Term life insurance
Term Life Insurance is a policy that pays a tax-free lump sum upon the death of the life assured or upon diagnosis of a terminal illness (this is defined as where the life expectancy is less than 12 months), within the term of the policy.

Decreasing term insurance (mortgage life insurance)
Mortgage life insurance is commonly known as decreasing term insurance, the cover reduces each year, usually in line with your mortgage. The monthly premiums remain the same each year and will be cheaper than level term insurance. The policy pays a tax-free lump sum upon the death of the life assured or upon diagnosis of a terminal illness (this is defined as where the life expectancy is less than 12 months), within the term of the policy.

Family Income Benefit: this pays a monthly benefit instead of a lump sum, upon the death of the life assured or upon diagnosis of a terminal illness (this is defined as where the life expectancy is less than 12 months), within the term of the policy.

You can find out more about the different life insurance policy types on one of the many online life insurance websites. You can also obtain instant life insurance quotes to compare the different policies costs. Alternatively you can speak to an independent financial advisor you will be able to look at your personal circumstance and advice you of the best life insurance for your needs.