Life Insurance is an insurance policy to pay benefits to policyholders beneficiaries encase of death.
It ensures your Partner or Family get a lump sum payout on your death. This will assist with paying off mortgages, debts and also gives your loved ones or family the financial support to carry on.
According to certain resources, around 500,000 people die per year in the UK, rising to around 590,000 in the next 20 years.
If you have a family or you pay bills you should consider life insurance. If you don’t have dependents and are single then you would be right to ask the question. If you don’t have a partner or dependents you still need to consider other people around you who may have to take on any debt of yours or who may be liable financially if you die.
When taking out a mortgage you will normally need to have life insurance in place beforehand.
That is completely up to you. A rough guide to assist would be until your dependents come of age where they can financially provide for themselves or your partner and yourself reach retirement age. The terms are flexible between 1 and 30+ Years.
The best indication is to take roughly 10 times the highest earners’ income. However, you might want to over-insure yourself for certain things.
You may also like to think about putting the policy into something called ‘a trust‘. This would avoid the 40% Inheritance tax your beneficiaries would have to pay potentially. Our policies offer this option.
When purchasing a new property it is normally a requirement to also obtain Life Insurance. Mortgage Life Insurance is also known as Mortgage Protection will pay out if you die before you finish paying off your mortgage. This will ensure that your family are covered from having to continue paying the monthly instalments. It is a great way to protect the future of your family and dependants.