Ever felt like you Life Insurance being explained?
We have helped 100’s of clients get access to life insurance that caters for their circumstances. They have walked away with policies that have been chosen to cover their personal needs and wants. They know what they are covered for with no hidden agendas.
We wanted to explain to those that are still on the fence about taking out Life Insurance, how important it is. And, to better understand what Life insurance is and how it works.
Life Insurance is something that we hope we don’t have to use. It can prove invaluable if you were to pass away and have dependents. Life Insurance can be a difficult terrain to find your way around. Choosing the best policy can be difficult especially if you don’t know what you need to be covered for. There are so many types to consider. You need to know how long you want to the policy to run for and how much you want to be covered for.
Below is an informative guide to what to expect.
What is a Life Insurance Policy?
Most people would have heard of the term ‘life insurance’ but are confused on exactly what it covers. Broken down, a life insurance policy aims to provide your loved with financial security in the event of your death, or diagnosis of a terminal illness. The policy could cover you to payout a lump sum or regular monthly payments. This will help keep your family financially comfortable through a difficult time. We know this is never easy to think about let alone talk about, but it is something we should all consider.
There are two main kinds of life insurance. Level term is a popular choice. With this type of insurance, a lump sum, agreed at the start of the policy, will be paid out upon the death of the policyholder. The other major type of insurance is decreasing term life insurance, which is also sometimes called mortgage insurance. If you have a mortgage life insurance policy, the amount paid out reduces over time, in accordance with the amount left to pay on the mortgage.
To talk through what cover would be better for your circumstances give us a call on –
08081 551 807
How do these policies work?
Like most insurance policies Life Insurance is paid for monthly. The amount that you pay each month depends on the level and type of cover that you have selected. It will also take into account how high risk you are.
The sum that gets paid out in the event of the policy holders death depends on the type of cover and level chosen. Some policies will pay out if the policy holder is diagnosed with certain serious medical conditions. Always check the terms and conditions for the list of conditions that are covered.
Do you need Life Insurance?
Life Insurance isn’t a requirement, but it can be useful for a number of people. If you have children or a partner that are dependent on your income, it should be considered. It will give them financial safety should the worst happen.
A life insurance policy can also cover mortgage payments after death to ensure that your loved ones don’t have to worry about paying it off. They can continue living in the family home with peace of mind. If there are other outstanding debts or loans these can also be taken care of. Anyone can take out a life insurance policy to help their family in the event of their death.
One of the most popular reasons people take out an insurance policy is if they have children. If the main income earner’s pay cheque stops coming in, this could be devastating to a family unit. Not only will they be mourning the loss of a parent, but their life will be turned upside down through financial difficulties. With having a life insurance policy all of this can be avoided.
If you work in a high-risk industry, such as construction, logging, or something where you regularly travel, you can seek out life cover. Doing so can give you, and your family, peace of mind that their financial situation is protected should anything terrible happen.
Why is Life Insurance important?
You never think it is going to happen until it is too late. Without correct planning it can have devastating consequences for the family that gets left behind.
Those with a car will have car insurance and those with a house will have house insurance. But what about the most important financial income? The future of your family.
Life insurance allows you to readily prepare to make funeral arrangements prior to the time of death. On average, funerals in the UK cost around £3800, and as this is more than the average monthly wage. Once again, the correct policy will prove crucial for helping to manage such expenses.
If you decide to investigate further, please remember like any insurance you always need to review it annually. You need to make sure it is still suitable for your needs and circumstances.
Here are some other times when it is worth taking another look over your cover –
- Following a divorce or separation, especially if you have a joint policy.
- Taking on a new job or being made redundant – consider how your income changed and how this will affect the amount you need paid out in the event of your death.
- Lifestyle changes, such as giving up smoking.
- Changes to your estate and beneficiaries for any reason.
- An increase in debts to be paid off or a higher mortgage – make sure your family will still be able to cover these should you pass away.
Whether you are looking around, need some more in for just need to chat with someone that is knowledgeable in life insurance, give us a ring. We are always happy to help you feel more comfortable with taking out a policy.