Life Insurance Guide
What is Life Insurance?
Life Insurance pays out a sum of money to your loved ones should you die or in some cases if you become critically ill (when you have critical illness cover). If you have a family who depends on you and if you have a mortgage or indeed any other bills that your salary contributes to you should consider getting life insurance.
Life Insurance is also called Life Assurance. While it comes under many guises, the cover is essentially the same. You pay a monthly premium into a policy and should you pass away during the term your family will receive a cash lump sum.
There are two main kinds of life insurance and these are:
- Level Term Insurance: With this kind of cover, the sum assured is guaranteed and stays the same throughout the policy term. It is a type of cover that is frequently used to cover interest only mortgages and loans or for protecting your family.
- Decreasing/Mortgage Insurance: With Mortgage Insurance, the sum assured gets lower during the policy term. It is used frequently for capital and interest repayment for a loan or a mortgage.
Do I actually need Life Insurance?
Life Insurance is all about protecting your family if something happens to you. It is designed to ensure your family are not left with the financial burdens of things like mortgages or debts – particularly where the main earner passes away.
Many people wrongly assume that when a person dies, their debts go with them. However, this is not the case at all. In fact, any outstanding bills will automatically pass onto a partner or even children. Therefore, an advantage of life insurance is that these kinds of issues can be eradicated with financial cover to pay them.
If you don’t have a mortgage or other debts, assurance can be a good way to make sure your family and their financial stability in the future is secured. Leaving money for your family can be provided by good life insurance for this reason.
How much will life insurance cost me?
Life Insurance and how much it costs is determined on an individual basis. This is because everyone’s circumstances are different. For example, someone may have a higher or lower mortgage, more or less debts, more or less children and so on. Therefore, each policy is usually written according to these factors along with a few others.
Equally whether you are a smoker, what age you are and medical history will also be factored in as well as the type of cover you choose to purchase.
You can get a quote right now by filling in the quick quote form on our website. One of our qualified consultants will call you back with figures from leading insurers, which will allow you to compare both policies and cover accordingly.
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