Have the right policy in place
With access to providers from across the market we can provide you with bespoke advice on your life insurance arrangements to ensure that you have the right policies in place at the right price to protect you and your family if the worst were to happen.
Life insurance will pay out money as a lump sum or as regular payments in the event you were to die. You can choose who receives these payments. It is designed to provide your dependents with the reassurance that there are provisions if you are no longer there.
The amount of money paid out depends on the level of cover you buy.
What are the different reasons why you might take out life insurance?
Here are just a few:
- Children – a life insurance policy could provide an income for your family while they’re growing up if you are no longer around to provide for them.
- Remain in your home – a life insurance pay-out could allow your partner or family to remain in their home in the event of your death.
- Leave a legacy – a policy could provide your surviving relatives with inheritance when you die.
- Funeral costs – an insurance pay-out could provide your family with a lump sum to assist with funeral costs.
What are the different types of life insurance?
There are three main types of life insurance to consider:
- Level Term Assurance: pays out a lump sum if you die within the specified term. The amount you’re covered for remains level throughout the term.
- Decreasing Term Assurance: the amount you’re covered for decreases over the term of the policy. These policies are often used to cover a debt that reduces over time, such as a repayment mortgage as they will run hand in hand. This is the most common.
- Increasing Term Assurance: the amount you’re covered for increases over the term of the policy, to keep up with inflation so that your family can make the most of the payment.
The amount of cover you should take out really depends on what you are looking to cover. The more protection your life insurance policy offers, the higher your premium will be.
We advise our clients to regularly review their life insurance policy as circumstances can change. For example, your mortgage may have increased/decreased so you will need to ensure the amount covered is reflected. Alternatively, you may have started a family since taking out the policy so you may need to think about the amount you want to cover because of this. It is worth bearing in mind not to cancel any existing contract until the new policy is in force.
Please get in touch today and we will be happy to have a discussion about your life cover arrangements.
*Life assurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.