Affordable life insurance policy
What is an affordable life insurance policy?
An affordable life insurance policy provides customers with an insurance policy which will pay out a lump sum payment to the families of customers who lose their lives whilst in possession of a valid policy, and is designed to be affordable for all customers.
Traditionally customers will be encouraged to take out an affordable life insurance policy when they buy their first home, and this policy will often cover the entire period of their mortgage, leaving enough money behind to pay off the mortgage should the worst happen to the customer.
There are increasing calls for customers to consider taking out an affordable life insurance policy earlier in life, particularly families who have children before buying their first home, something that is becoming more common every year. An affordable life insurance policy is designed to protect and provide for a customer’s financial responsibilities if they were to die, and children are on of the biggest financial responsibilities many people will take on.
Why do I need an affordable life insurance policy?
Life insurance provides peace of mind that should the worst happen, your family will be looked after. The easiest way to work out if an affordable life insurance policy would benefit you is to imagine you died tomorrow, and then worked out what would happen to your family’s finances over the next year. The vast majority of families in the UK would not be able to cope, and would quickly fall into debt. Many families would end up defaulting on their rent or mortgage repayments, losing their home in the process.
An affordable life insurance policy payout can leave your family financially secure, with enough money to pay off the mortgage and guarantee themselves somewhere to live, and with enough money to pay for household bills until they find a way back onto their feet.
Types of affordable life insurance policy
There are two main different types of affordable life insurance policy. Term life insurance provides customers with insurance for a certain term, and is normally offered for the length of a mortgage, as this is most people’s single greatest financial responsibility. Whole life insurance provides customers with life insurance for their whole life, and is around eight times more expensive as a result. Every whole life insurance customer will receive a payout eventually.