Term Life Insurance
Nobody likes the idea of death or being diagnosed with a critical illness. But the reality is that it will happen to all of us. We can not plan when we are going to die or be diagnosed with a critical illness and it can often happen when you least expect it. Term Life Insurance is an insurance policy you can take out which will pay your family a lump sum benefit in the event of your death or critical illness if you have added this to the policy. Term life insurance is a fixed term insurance paid for by the life assured in order to benefit his or her family to financially help them to pay off any debts such as a mortgage. A level term life insurance policy may be used to cover an interest only loan and decreasing term life insurance to cover a repayment mortgage. Either way a term life insurance policy is to insure that your family receives the financial help they need to enable them to carry on as best they can without having to move or go in to debt.
Why do I need Term Life Insurance
Many people when they think of insurance instantly think about car insurance or house insurance. People are happy to pay a fee to cover their household goods insuring washing machines and televisions.Most law abiding people wouldn't dream of not insuring their car. But people often forget to insure the most important things in life which are themselves. If you had a money making machine in the corner of your front room paying £2,000 per month cash into your house for you, would you insure it? Most people would agree it would be well worth insuring. Well that machine is you or possibly your partner who is bringing in the money each month paying the mortgage and bills. When a person dies there is not as much government help as you may think. When a the main bread winner dies often the family will be left in a financial mess and will not be able to afford the payments on a mortgage. The government will offer limited help but this will not normally cover a large mortgage and sadly too often the family will have to move. This may mean children moving schools and remaining partners having to take out another job. The emotional side of loosing a family member is enough let alone having to deal with financial problems relocation. Term life insurance can go a long way in helping the family in their time of need and although it will never replace the loss of a family member, it will go a long way to helping the family continue as normally as possible.
Other Types Of Life Insurance Policies
Of course their are other types of life insurance that may be more suitable. If you are looking for a guaranteed pay out on death then it may be that you should look at whole of life insurance. If you are a director of your own company it may be worth looking into the benefits of placing your life insurance as a relevant life policy. This can be a more tax efficient way to take out life cover and may also be an alternative to a death in service scheme if your company does not normally qualify for death in service. Of course life insurance can also be set up to cover employees if they are key to the business which is key man insurance. Or it maybe that you would like to protect your shareholders in the event that another shareholder dies. For further information speak to one of our qualified advisors.
