Have you been thinking about whether life insurance could be the right choice for you? This is an enticing possibility for individuals who want to protect the future wellbeing of their family and give them the best quality of life possible. But is it really worth it?
Life Insurance Explained
Life insurance will pay your dependants money if you pass away during the period of coverage. This can be arranged as either regular payments or potentially a lump sum, depending on your needs. With life insurance, you can guarantee that your dependents will be looked after even if you are not there to provide for them. How much is paid out will be determined by the level of cover you buy. You can also set it to provide for specific payments including mortgages and rent.
Types Of Life Insurance
There are two main types of life insurance. You could either opt for a whole-of-life policy or a term life insurance policy. With a term life insurance policy it runs for a fixed period and will only payout if you pass away during this time.
A whole-of-life policy pays out regardless of when you die as long as you keep up with the payments.
What Isn’t Covered?
You might be interested in protecting the finances of your family in the event that you are injured or fall ill and are unable to work. While some policies provide terminal benefits in most cases, this won’t be the solution you need.
Similarly, policies do have exclusions. For instance, your family might not receive a payout if you pass away due to a drug overdose or alcohol abuse. You may also find that the policy excludes death due to an illness that you had when you took out the policy.
Do You Need Life Insurance?
This is going to depend largely on whether you have dependents. Dependents could be school-age children who won’t be able to provide for themselves. They could also be a partner who is on a significantly lower level of income than you or who is unable to work. It could also mean that you have a family who is living in a house with a mortgage that you make payments on. With life insurance, you can ensure that you cover the cost of these payments. Compare life insurance quotes on Lendingexpert.co.uk to get an idea of the costs and providers available.
Of course, you might also find that life insurance is beneficial for a wide range of other costs that will be left for your family to pay. For instance, the money can be used to pay funeral expenses or medical bills if you passed away due to a long term illness. On the other hand, if you’re single or your partner does earn enough money, then you probably don’t need life insurance. Although, it could still be in your best interest to arrange this coverage and ensure that they get the extra financial support they need during a difficult
Ultimately life insurance will provide you with the peace of mind that your family and loved ones will be taken care of after you pass away. They won’t have to rely on government support which is likely not as substantial as you may think.