What is life insurance and how does it work?
There are many reasons why people decide to take out a life insurance policy. Getting Married, Having a child or taking out a mortgage can all make you stop and think about how people who depend on you financially would provide for themselves if you weren’t around anymore.
What is life insurance?
Life insurance is a policy that protects your loved ones financially in the event of your death. Death isn’t something people like to think about, so life insurance often gets overlooked. Research from Direct Line revealed that 60% of people agreed that life insurance would benefit their family if the worst were to happen, yet only 35% held a policy
How life insurance works
You can choose the term of the policy and the amount you’d like to be paid out, should you make a claim. Depending on your policy, it can either pay out in one lump sum or in regular monthly payments. By speaking to an Adviser they can help determine which type of policy would be right for your needs. For instance, you may decide on a Family Income Benefit which pays out monthly to help with the bills, and a life insurance policy to pay off the mortgage.
The cost of life insurance
The cost of the premiums will depend on several things, including the amount you want to be covered for and how long for, as well as your age, health, if you smoke, drink etc.