What will it do for me?
Article published on 24th June 2009
Choosing your life insurance cover can be a confusing time, with a variety of options available and decisions to be made ranging from the length of time you want to be protected to the amount of cover you require and if it should be protected from the effects of inflation.
All these questions can leave you asking if you really need life insurance cover and what it will actually do for you and your family in the long run.
Do I really need cover?
Life Insurance is vitally important to people in a wide range of circumstances. If you have liabilities such as a mortgage, if you have a family or if you simply feel you should be able to pay for your own funeral arrangements, life insurance is a good choice for you.
What would happen if I didn't have cover?
A lot of people believe that when you die, your liabilities are simply written off and disappear with you.
Unfortunately this couldn't be further from the truth and in most cases liabilities such as debts or mortgages will transfer to your spouse or even to your children. Whilst mortgages are easily resolved through the sale of property, debts are not so easy for your family to deal with and could hinder their financial security for a long time to come. Even if selling the property is a solution, that then means that your family would be forced to find a new place to live and the family home you worked so hard to create, would be gone.
So what will Life Insurance actually do for me?
A life insurance policy will pay your family a lump sum of money if you die during the policy term. The amount it pays out and for how long you are covered, are chosen by you at the start of the policy and the decision is usually based on your current situation, liabilities, budget and family.
For instance many people who have a mortgage will decide to have their life insurance cover payout the same as the mortgage balance and have the policy run for the full length of the mortgage. (Usually called mortgage life insurance) Using this approach, if the worst should happen, the mortgage could be paid off in full by the family and they could continue to live in the family home.
Your life insurance cover is just as much about providing peace of mind as it is about providing financial security. Your spouse and family would have enough to deal with if you died without the worry of losing their home and the concern of putting food on their table.
Is it easy to arrange?
Organising your life insurance couldn't be simpler. All you need to do is follow our quick and easy quote form to tell us about yourself and your needs. We'll then search the whole of the market to find you the best priced policy and give you the option of either applying direct online for almost immediate cover, or speaking to one of our fully qualified advisers.
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