Life Insurance provides customers with peace of mind
When you take out a life insurance policy you are basically allowing your whole family to sleep easy at night, safe in the knowledge that if the worst happens they will still be financially looked after.
It’s many people’s biggest worry about how their family would cope financially if they were to lose their life, but life insurance takes that worry totally out of the equation.
A life insurance policy very simply gives you an insurance policy which will pay out a lump sum payment to the person you nominate, in the event of your death, so long as it’s within the term of the policy. Most people take out life insurance when they have their first child, or buy their first home, and keep it during their period of greatest financial responsibility.
If you were to die a few years into your mortgage, and when you have young children, you will leave behind enough money to pay off the mortgage, leaving the home to your family, and to raise the family as well.
There are two main types of life insurance to consider. Term life insurance provides customers with life insurance over a certain term, whilst whole life insurance provides customers with insurance for their whole lives.
Term life insurance is around eight times cheaper than whole life insurance and is the most popular form of life insurance sold in the UK, mostly because it offers customers cover when they need it, Most customers find that they no longer need life insurance once their kids have left home and they’ve paid off their mortgages, although whole life insurance offers customers a guaranteed return on investment.
There are many pros and cons of both insurance types, although many go for the more affordable option as they can make sure they get a higher level of cover in case the worst happens.
Life insurance is an essential insurance policy for your family, and is one of the most important you will ever take out, and you certainly won’t regret it when explaining to your family how secure they are in case the worst happens.