Life Insurance Explained Simply
Taking out life insurance will be one of the best financial decisions you might make in your life. If you die leaving dependants behind, a life insurance policy could provide some financial security and allow them to meet ongoing expenses.
None of us know what lies ahead and indeed no one really wants to contemplate their own death but if you can afford life insurance cover then you should at least consider what your death would mean financially for your loved ones. Having some level of cover could prove to be invaluable in a time of need.
If you are considering taking out cover, here are some questions that you might have.
How much cover should I get?
The amount of cover that a person needs depends on their own unique circumstances. Your cover need will incorporate debts such as your mortgage and should also include an ongoing sum that will help your family moving forward. Some employers provide insurance that pays out a lump sum if you die so you should check if there is anything in place and take that in to account.
How long should I remain covered?
When you take out Life Insurance cover you decide how long you need your cover for. You might take various factors into consideration, such as the term of your mortgage, the age of your dependents and when you intend to retire. In general you will be aiming to have your cover in place for as long as it is needed.
How much will it cost me?
The good news is that life insurance premiums are not as expensive as you might think. Factors that influence the cost of your insurance cover include:
- Your age
- Health considerations
- Your smoking habits
- The term of your cover
Putting cover in place, could really give your peace of mind for the future.