The Importance of Life Insurance
Rates
If you have people who depend on you, having term life insurance is critical. No one is comfortable at the thought of his or her own death, but it's something that you have to plan for if you have loved ones who depend on you. If you were to die, would you be 100% certain your family's financial security would be preserved? Would your children be able to go to college? Could your spouse retire in comfort? The right life insurance policy can help you answer all of these questions confidently and with peace of mind. On our site, you can find the policy that's best for you by getting life insurance rates from some of the best insurers in the business.
What is Life Insurance?
Life Insurance pays a cash lump sum to your loved ones if you die, or become terminally ill. If you have a family or a partner who are financially dependent on you, or if you have liabilities such as a mortgage or loan then you should consider Life Insurance.
Life Insurance is often referred to as Life Assurance, Term Life Insurance, Term Life Assurance or Mortgage Life Insurance. While it comes under many names, the essence of the policy is the same, i.e. you pay a monthly premium and in the unfortunate event of your death, a tax free sum of money is paid to your family or nominated beneficiaries.
There are 2 main types of Life Insurance:
- Level Term Life Insurance: With Level Life Cover, the sum assured is guaranteed and remains unchanged throughout the term of the policy. It is often used to cover interest only mortgages and loans or for family protection.
- Decreasing Life Insurance/Mortgage Life Insurance: With Mortgage Life Cover, the sum assured decreases throughout the term of the policy. It is often used to protect capital and interest repayments on a mortgage or loan.
Do I actually need Life Insurance?
The idea behind protecting yourself with Life Insurance is that if the worst was to happen to you, your family would be not be left with the burden of having to repay mortgages or other debts which, with the loss of the families main earner, could prove very difficult and financially devastating.
A lot of people think that when a person dies their debts pass away with them. Unfortunately this is simply not the case and outstanding liabilities will pass to surviving partners or children. The main advantage of having a Life Insurance policy is that these liabilities can be covered allowing your family to pay off these debts and have one less major thing to worry about at a time when they are mourning your loss.
Even if you do not have a mortgage or other liabilities Life Insurance can be an important tool to ensure your families financial future and to make sure your children have the upbringing that you intended for them. Leaving a sum of money for your family can be achieved in a number of ways using either traditional Term Life Insurance or using a Family Income Benefitscheme which will pay out a monthly amount for a number of years, instead of paying out a lump sum.
