What is Life Insurance
Life insurance is a form of insurance on the life of a person. If the worst happens and the insured individual dies, then the insurance policy pays out a sum of money to the policyholder’s immediate family. Often referred to as ‘life assurance’ or ‘term assurance’, life insurance allows your family to be protected in the unfortunate event that you die early, whatever the cause. Let Better Insurance help find you the right policy to safeguard your family.
Why do I need life insurance?
Coming to terms with the loss of a loved one is never easy. However, the passing away of someone near and dear to us can often leave an additional, ongoing financial burden. This makes the initial grief much more difficult to cope with. That’s why life insurance is so important. Not only does it give you the confidence you are safeguarding your family (or business partner) whilst alive, it also ensures you protect them if you die. Reasons to take out life insurance can include:
- Mortgage repayments – do you wish your mortgage to be paid off in the event you pass away?
- Replacing the primary earner’s salary – this ensures your family does not suffer financially after your death.
- Replacing childcare – the death of the primary childcare provider can lead to the need for childcare expenses. Make sure you factor in childcare fees as a potential cost if you die.
- Education expenses – this ensures you are covered for your children’s school/university fees in the event of the death of the primary earner.
Whether it’s about leaving your debts behind or ensuring your family can maintain their standard of living in the event you die, there are plenty of solid reasons to look for the very best life insurance policy you can get. Obtaining a competitive quote is therefore an important part of finding the right policy for you and your family.
Saving money
Buying life insurance online saves money as it cuts out the insurance broker or ‘middle man’. At betterinsurance4u.co.uk we compare the best insurance products available to find a policy that suits you.
Here are some important elements to look out for:
- ‘Written in Trust’ – if your policy is written in trust then in the event of a claim this means that the money goes directly to the person you nominate. It also avoids your estate paying inheritance tax which can mean a 40% tax saving.
- Joint life insurance – this is normally written on a first death basis, meaning the policy pays out on the death of the first policyholder. It might save you money but keep in mind that it could leave the second policyholder trying to get a new affordable life insurance policy in old age. Overall it could turn out more expensive in those circumstances.
- Critical illness – a life insurance policy with critical illness cover will work out much cheaper than two separate policies for both ‘life’ and ‘critical illness’. Also remember to differentiate between critical illness and terminal illness cover. Most policies will automatically include terminal illness cover but the critical illness policy will pay out the lump sum for a wide range of illnesses with no life expectancy criteria.
