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Life Insurance

We all think it will never happen to us but sadly statistic show that one child in every 20 loses a parent before they finish their full time education. Term life insurance also known as life assurance is remarkably cheap and costs as little as £5* a month. This ensures that a lump sum is paid to your dependents on your death.

If you have dependants then life insurance is necessary to ensure that they are financially secure (e.g. could pay the mortgage) if you were to die. Life insurance ideally should all cover your shortfalls and debts.

Statistics show that two out of three people in the UK do not have life cover. This is quite worrying because terminal illness and tragic accidents are not predictable, they do not warn you when they are about to happen.

Peace of mind can only truly be achieved when life cover is in place.

There are two main types of life insurance cover: term insurance and whole life insurance.

Term insurance

This type of insurance pays out a fixed amount of money (the 'sum assured') if you die within a specified period (the term , for example 25 years), but nothing if you survive that term. If you are on a tight budget, then term insurance may suit you, as it is the cheaper option. You can buy cover for the period of your mortgage or until your children are grown up.

Whole life insurance

This provides a guaranteed fixed sum (sum assured) upon death of the life or lives assured. There are various versions of whole life policies that offer you complete choice and suitability. This type of cover is a more expensive way of providing protection and is often used for protecting financial assets.

It is necessary to identify which type of life insurance cover is best suited to your personal circumstances, and the appropriate level of benefit to bequeath your family.

There is fierce competition between life insurance providers and there are many low cost products to choose from. Consumers can now research online to get quotes and information without having to trek from office to office or having people coming to your home. Get a mix of quotes from direct insurers as well as insurance brokers to get as broad a picture as possible of the deals on offer. Cheap isn't necessarily the best, it depends on what your individual needs are.

Before taking out a life insurance policy check for what life cover you may already have, for example as part of your employment package which is often included with company or personal pension schemes. Also check with your trades union or professional member organisation as death benefits may be built-in to the membership subscription fee.  

Don't delay, get cover today!