Life Insurance policies pay out if you die within a specified period. This is usually the cheapest way to provide financial protection for your family in the event of your death.
Why do I need life Insurance?
Coming to terms with the loss of a loved one is never an easy thing to do and adding financial burden to the grief makes coping even more difficult. Receiving a lump sum of money can help to support your family or even a business partner after you die. Some of the reasons to take out life insurance could include:
Covering childcare costs
Whatever the reason, it is important to ensure your family can maintain the standard of living to which they were accustomed and that you would want them to have.
There are various types of life insurance policies…
The same level of cover is maintained throughout the policy term and can be used in conjunction with an interest only mortgage.
Decreasing Term Insurance
The policy pays out an amount (sum assured) which reduces throughout the term of the plan and is mainly used to protect repayment mortgages.
Convertible Term Insurance
The sum assured stays the same for the term of the policy. However, for an additional cost you will have an option to convert this original plan, or part of it, to another type of policy.
Family Income Benefit
Family Income Benefit (FIB) provides a tax free, regular income which is paid out for the remaining term of the policy if you die. FIB can provide a replacement income and may be index-linked to inflation.
Death in Service Benefit
Death in service benefit is the name for cover which can be provided by your employer if you die while employed.