It’s not easy to think about how you would secure your family’s future if you were no longer around. Understandably, we would rather not think about this, but it’s important to protect the things that really matter – like our loved ones, home and lifestyle – in case the unexpected happens.
What is life insurance?
Life Insurance provides a safety net for your family and loved ones if you die, helping them cope financially during a difficult time. Ultimately it offers reassurance that your family would be protected financially if the worst was to happen. Life insurance is also referred to as ‘life cover’ and ‘death cover’.
Do you need Life Insurance?
If your spouse, partner, children or other relatives depend on your income to cover the mortgage and living expenses, then it will be something you need to consider. Times to consider life insurance include:
Starting a family
Taking out a mortgage
Starting or ending employment
Planning a funeral
Covering inheritance tax for your dependants
You might like to try our risk calculator. This calculator identifies the percentage chance of you being unable work for two months of more, suffering a critical illness, or death occurring at some point between now and when you plan to retire.
Depending on your personal situation, the type of life insurance product you need will vary so getting the right advice is essential. There are a variety of types including level term insurance, decreasing term insurance, whole of life and many more.
But don’t worry your adviser will establish what you need.
How does it work?
Life insurance usually pays out a lump sum if you pass away and some pay out if you are diagnosed with a terminal illness where you’re not expected to live more than 12 months. You decide how much the policy will pay out depending on factors such as your outstanding debts and continued living expenses for your partner and children.
How much does it cost?
This depends on your personal situation and includes:
Information about your health
Information about your lifestyle
Your partners details (if joint cover)
Is Life Insurance for you?
Our independent financial advisers will take you through a step by step process to understand what type and amount of cover you will need for your circumstances. Our independence allows us to research and source the right product for your needs from the whole marketplace and our advisers will manage your application from beginning to end.
You may wish to read our Guide to Protection Planning which explains the different types of life insurance as well as income protection, critical illness and private medical insurance. This guide is meant for your general information only and is not intended to address your particular requirements.