Life insurance pays out a lump sum to your loved ones if you pass away or are diagnosed with a terminal illness while your policy’s in place.
Life Insurance gives peace of mind and it could give your dependents financial stability when you die. Cover starts from under £5 a month, and you can choose the sum insured based on the amount of cover required for financial security.
It can cover any outstanding financial commitments you have – like your mortgage or loan repayments – so your family won’t be left with payments they can’t afford after you’re gone.
You have a few choices to make before you buy a life insurance policy.
For example, do you want the insurer to pay a set balance when you die regardless of how long you’ve held the policy for? This is called Level Term Life Insurance and is just that – a pre established lump sum paid out at any point in the life of the policy should you pass away or become terminally ill.
Alternatively, would you prefer the insurer to decrease the value of cover as the policy gets older in line with your outstanding debts? This is called Decreasing Term Life Insurance and the amount paid out decreases over time. It is normally in line with your mortgage repayments and length of mortgage. If you pass away half way though your mortgage of, for example, 25 years then the policy would pay out on the balance ensuring your family don’t have any mortgage debt.
The policy you pick depends very much on your circumstances.
Our life insurance protection advisors are on hand to give you the different options and quotations based on policy type and amount insured.