What is life insurance and how does it work?
In essence, life insurance is a protection that pays your dependants a lump sum of money upon your death. It gives you the peace of mind that your loved ones will not be left in a compromising financial position if you are no longer there to provide obligations.
How much will an insurance company pay out upon my death?
The answer is quite simply how ever much you decide. As with most things in life, the more you pay, the more cover you can get. To give you an idea of costs, click here for our FREE NO OBLIGATION quote to see how much cover you can get for your dependants.
Are there lots of different types of confusing life insurances policies?
There are two prominent types of life insurance available in the UK.
The first is TERM LIFE INSURANCE, which will run for a fixed period of time (e.g. 10 years, 20 years, 40 years etc). This type of policy will pay out if you die during this specified ‘term’ of years. Term is generally less costly than permanent insurance.
The second is what’s known as a WHOLE OF LIFE POLICY which will pay out no matter when you die, providing you have kept up with your premium payments.
But do I really need life insurance?
With more people concerned that the government will not protect their family in the event of your death, life insurance is becoming a MUST HAVE insurance. If you have a partner and/or children who rely on your income, then a life insurance policy can help provide for them if you die. If you are single with no dependants and your family (parents, siblings etc) have the means to keep going, then life insurance may not be for you. However, people are putting policies in place to give their families extra cash upon their death so they can relax more and enjoy the finer things in life once the initial grief has cleared.