Life insurance provides you with the peace of mind that, should anything happen to you, your family will be protected financially.
If you are the main breadwinner of the family, it is especially important to take out life insurance. If you happen to die unexpectedly then at least your bereaved family will not have additional financial burdens to add to their grief. Andrew watt from lifeinsurance.org.uk recently stated that “Freak accidents can happen to anyone, but having life cover will ensure that you or your family don’t suffer financially because of a nasty accident that could leave you out of work for a long period of time.”
Here are some common questions that surround life insurance.
Who does life insurance benefit?
Life insurance is really for the people you may be leaving behind. In terms of financial advantages it will be your loved ones who see the benefits rather than yourself. The benefit for you yourself is the peace of mind you will experience knowing that your family will be able to cope financially without you. In terms of business life insurance you are reassured that the company will not suffer financial losses or go under should anything happen to you.
What does life insurance cover?
There are many different types of life insurance policy on the market. Choosing the one which you feel is right for you can sometimes be tough as there are so many options. You can take out a policy which simply pays out a pre-specified lump sum to the named recipient in the event of your death. You could choose one which guarantees to pay off the remainder of your mortgage, or cover any other debts you may be aware of having. If you are over 50 you will have a smaller selection of policies to choose from but that does not mean you will not be able to find one which is right for you. Life insurance payouts usually pay for funeral costs and any outstanding debts.
Where can I buy life insurance from?
There are hundreds of insurance providers in the UK alone, so knowing where to go can be hard. Using internet comparison sites is a good place to start. That way you only have to type in your details once instead of filling in forms on many different sites. The life insurance calculator from lifeinsurance.org.uk will save you hours of searching. You could also go through an insurance broker. This is especially advisable if you are planning on taking out a range of policies or if you have never used insurance before, as they can explain al the jargon to you and help you find the best policies. Brokers do not always charge a fee either, so there is nothing to lose.
How will I know I’m getting the best deal?
The use of price comparison sites means that you will always know which is the best deal. As the sites are not affiliated with any particular company themselves, they will always give you fair information and let you know which is the cheapest price for your particular needs. If you choose to ring round companies instead each will put on the hard sell and try to tell you their product is the best there is, whether it is right for you or not.