Life Insurance
Whilst we all expect to live for many many years, none of us can really predict
what will happen to us in the future or what events are waiting for us around
the next corner.
What would happen to your family in the event that you were suddenly killed
tomorrow on your way to work? Could your family continue to live their lives to
a similar standard? Could they keep the roof over their head that you worked so
hard to provide?
Life Insurance (also known as
Life Assurance,
Term
Assurance or
Mortgage Life Insurance) provides a cash
lump sum to your loved ones in the event that you die or become terminally ill.
This lump sum could then be used by your family to pay off your major
liabilities, normally your mortgage, securing the roof over your families heads
and ensuring they are not plunged into hardship and poverty.
If you have a family or partner who are financially dependant on you or if you
have major liabilities such as a mortgage or loan, then getting a Life Insurance
quote is a must to protect their way of life.
Life Insurance itself comes under many names but essentially they are all the
same. They all aim to provide a tax free cash lump sum in the event of your
death in exchange for a monthly premium paid to the insurance company.
The exact amount of cover will vary depending on your needs but will generally
be enough to pay off your mortgage and to cover other liabilities. You may
decide to add a little extra to your cover, to relieve the financial burden from
losing a wage earning member of the family or you may decide to simply remove
the biggest burden of the mortgage.
Either way, the options are available and can be tailored to suit your needs, wishes
& circumstances.
There are two major types of Life Insurance depending on your circumstances:
- Level Term Life Insurance: With a level cover the amount you choose to
protect is guaranteed to remain the same throughout the policy. It won't reduce
over time and if your family needs to claim on the policy, it will pay out the
full level of cover. This type of cover is often used to protect interest only
mortgages or loans, or for family protection.
- Decreasing Life Insurance/Mortgage Life Insurance: With decreasing or
mortgage life insurance, the amount of cover you choose will decrease over time
throughout the full term of the policy. This is most suited to Capital and
Repayment mortgages, this is not suitable for interest only mortgages
As with all things in life, various other options also exist for your life
insurance. For instance perhaps you do not wish to leave a lump sum for your
family, but would rather leave a monthly benefit for your family for a number of
years. This option is well suited for those with children in private education,
who wish to ensure that in the event of death, their childrens education fee's
could still be paid.
Get a
free, no-obligation
QUOTE NOW...