What is Life Insurance?
Life insurance is a type of cover which will help protect your loved ones financially if you were to die during the length of your policy. It is not a savings plan and cash would only be paid out once a claim is made. You choose the value of the cover and how long it is required and pay your premium monthly or annually. Upon death your family would receive a lump sum which would help to pay mortgage bills, household bills and childcare costs.
Do I need life insurance?
If you are the main breadwinner in the family and your family would struggle financially if you died it is imperative to have life insurance. Also, anybody who has dependents needs to consider taking out life insurance. It would also be important to have life insurance if you have debts, loans or an outstanding mortgage.
Although a simple concept there are many types of life insurance:
- Whole of life – This type covers you for the whole of your life
- Renewable Term – This gives you the option at the end of your original term to extend the term of your policy without the need for medical underwriting
- Level Term – This protects you for a fixed term for a fixed benefit
- Increasing Term – This protects you for an increasing level of benefit for an increased premium
- Decreasing Term – This protects you for a decreasing level of benefit however the premium doesn’t decrease
- Convertible Term – This gives you an option to convert it to a whole of life policy at the end of the term without the need of a medical
For more information on Life Insurance, please contact us.