How much cover do I need ?
Good question. It depends on several factors, the primary one being how much
financial liability you have. Some people do not realise that when they pass away their debts are automatically passed onto their next of kin.
For most people, the biggest liability they have is their mortgage. It is for this reason that there is specific insurance designed to cover mortgages. Many mortgages decrease over a specific term so you can
take out a life insurance policy that decreases alongside your mortgage. This is also a very cost effective way of obtaining cover as the liability to the insurance company is reducing over a specific period of time,
meaning the premiums they offer are cheaper.
If you have an interest-only mortgage, then you will know that the liability doesn’t reduce over time,
meaning you are expected to make other arrangements to ensure that the mortgage is repaid.
In this situation, you may want to consider life insurance on a level basis, ie
a constant amount for the whole term which ensures that your mortgage is repaid.
Having a life insurance quote for this form of cover will pay the mortgage, but is more expensive than the decreasing type.
In addition to mortgages, many people also have loans, credit cards, student debt and car finance that they need to cover. These can also be covered with life insurance.
Provided the insurance premium is affordable, having a policy to cover your mortgage & debts and also enough extra protection to provide an income in the event of death,
will give you the peace of mind that you are leaving your family in a strong position financially.
So, why not get a
free, no-obligation
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