Do I need Life Insurance?
Life cover, death cover, life insurance, life assurances there are many terms batting around the life insurance field, but people are often unaware of what it really means…
If you have a child, partner or another family member who relies solely on your income to cover the mortgage and living expenses, then the answer to your question is YES, you do need life insurance.
Life insurance will help provide for your nearest and dearest in the event of your death.
What is life insurance?
Life insurance can pay your family a lump sum or regular payment in the occasion of your death. With Life insurance you have peace of mind that your dependents will be safe when you are no longer around.
The amount of money paid to your dependents ultimately depends upon your level of cover. You have full control of what the money will be used for, whether that be specific payments, including mortgage or rent.
There are two types of life insurance policies available to you:
1. Term Life Insurance
These policies last for a set period of time (known as your policy term) i.e. 5, 15 or 25 years. This kind of policy only pays if you die during the policy term agreement. There is no payable lump sum at the end of the policy term.
2. A whole–of–life policy
This covers the lot and will be payable no matter when you die, so long as you keep up with payments.
What does life insurance not cover?
Life insurance only stands over death, it will not cover your family because of illness or disability. Most policies have exclusions. For instance, they may not pay out if you die due to drug or alcohol abuse, and usually you need to pay extra to participate in such risky sports.
Life Insurance Policies work on an ad hoc basis, so if you were to fall ill and then take out a life insurance policy, your policy will not cover death caused by that illness.
‘Do I need Life Insurance?’
Who doesn’t need life insurance? If you have dependants (school age), a partner who is reliable on your income or a family living at home with a mortgage which you pay, then life insurance can provide for them when you die.
You cannot solely rely on the government to take care of your loved ones, the money they would receive from the government is much lower than you’d expect. If you want to provide for your family financially, then life insurance is a must.
Life insurance Quotes NI that you can trust
Financial Foresight understands that family protection matters. Death and ill health are traumatic enough without having to cope with the financial implications to the family unit. Financial Foresight can provide assurance that you and your family are financially secure.
In addition to protecting the family unit it is essential to make sure that the financial implications of death and illness of business owners, directors and key employees are covered.
Ensuring the most appropriate type and term of cover requires financial planning with foresight.
For a free consultation call our office today 028 9332 2882 and make an appointment