What is Life Insurance?
Term Life Insurance is life insurance that covers you for a specified and agreed length of time. In the event of death during this time, a cash lump sum will be paid out. It is particularly important to have for the key years that you might have dependants who rely on your income.
You can also take out a Whole of Life Type Plan which will pay out a guaranteed pay-out when you die, these type of plans usually hold higher premiums.
The type and amount of Life Cover you choose should be based on your individual circumstances and requirements.
Typically, it’s important to have Life Cover in place if your death will have a financial impact on others. If you have a family and dependants, your death could be financially devastating to their finances.
However, if you have no dependants, you may just require minimal cover to pay your outstanding debts and ensure your affairs are left in order.
A life cover pay-out can ensure:
- your mortgage is paid off when you die and your family is left with a home free from large monthly repayments
- funeral expenses and any outstanding debts are cleared
- your dependants can continue to maintain their lifestyle despite the loss of your earnings