“Life Insurance enables you to safeguard the financial stability of your loved ones, should the worst happen”
Not everybody needs Life Insurance, but If you have dependants who rely on your income, then Life Insurance is a must have cover. Life policies pay out a lump sum if you die, and most people buy it when they take out a joint mortgage to make sure the outstanding amount would be paid off if the worst was to happen, and ensure the family would be taken care of financially.
Apart from the main purpose of Life Insurance detailed above, other uses of Life Cover include:
- Sometimes parents take out Life Insurance policies to cover the inheritance tax bills their estate will generate, once they have passed away and their estate and belongings are distributed to children and loved ones.
- If you are a single parent and receive child support, or divorced and receive maintenance payments from a previous partner, you can even buy a Life Insurance to pay out if your ex-partner dies.
Types of Life Insurance Policies:
- Term Insurance – Term Life Insurance lasts for a fixed period and can be bought on a Level Term basis which pays a flat rate in the event of death within the stipulated term, or can be bought on a Decreasing Term basis which is cheaper and the payout decreases in line with the shrinking of your mortgage, as does the monthly payments for the policy.
- Family Income Benefit – If you need a policy to help raise children in the event of your death, then a Family Income Benefit policy can help you save money, there’s no lump some payout, but instead pays a monthly sum to the family for a set period following the death of the policy holder.
- Whole of Life – If you want a definite payout or would like to ensure a payout to cover an inheritance tax bill, then you are better of with a Whole of Life Insurance policy. It will guarantee a payout whenever you die, but is alot more expensive.
What factors effect the premiums on Life policies ?
Your policy will be cheaper if:
- You are younger
- You are a non-smoker
- You have less medical conditions or problems
- Your employment is in a non-hazardous sector
- You do not ride a motorcycle
How much cover do I need ?
Work out how much cover you need by including your outstanding mortgage, the amount of funds that will be needed for your family to maintain a comfortable lifestyle, and any other debts that might need to paid upon your death. Try not to under insure yourself as this will limit the ability of your family to pay the bills and have enough money to comfortably live their life comfortably. When calculating the amount of cover required, remember to include any life cover that your employer will payout in the event of death. If you are unsure of how to assess your Life Insurance needs, then get in touch with a an expert Insurance and Protection Adviser.
Write your policy in Trust
Finally make sure you ask your insurer write your policy in trust. This will ensure your policy funds goes direct to your loved ones and they won’t have to pay Inheritance Tax.
How I can Help
I can provide you with concise and comprehensive advice and assistance regarding all aspects of your Life Insurance needs, from initial advice to application stage, and all the way to completion. Having an insurance professional on hand to assist you every step of the process can save you time, effort and money, easing the stress of arranging insurance.
Please contact me today for an informal and friendly chat to discuss your needs. All initial advice is completely free and confidential. You can contact me using the “contact us” form at the top right of this Page and i’ll get back to you as soon as possible, or alternatively you can contact me via my details below, or CLICK HERE
Thank you for visiting.
Balraj Singh (Bal)
Tel: 0330 010 1433 (Mobile Friendly)
Mob: 07985 417 490