All About Life insurance
All About Life Insurance – What is life insurance?
Life insurance gives customers an insurance product that will pay out a lump sum payment to a person of their choosing in the event of the customer’s death. Customers will usually use life insurance to leave money behind to their families, and the money is often used to help pay for the bringing up of children and to pay off a mortgage.
All About Life Insurance – Why do I need life insurance?
Life insurance provides a customer with peace of mind. Whilst you will never expect to die, sometimes accidents and illness happen, and all the best laid plans go out of the window. Life insurance provides customers with a contingency plan to help the family overcome financial obstacles without the earning power or time or one of their family members.
To work out if life insurance can help your family, ask yourself what would happen to your family’s finances if you were to die tomorrow. Take into account childcare costs, the cost of the mortgage and other household bills. The majority of families would struggle, and many would be unable to afford the mortgage, and would end up losing their home. Life insurance can provide families with a guaranteed home to live in, and financial stability at such a difficult time.
All About Life Insurance – How much does life insurance cost?
Life insurance varies in cost from one customer to another, and every customer will be given a personalised quote. Generally speaking, the younger a customer is when they take out the insurance, the cheaper their policy will be, because they are seen to be further from death, or less likely to die. Customers who smoke or have unhealthy life styles should expect to pay more as they will be deemed to be more likely to die young.
All About Life Insurance – Are there different types of life insurance?
There are two main different types of life insurance. Term life insurance provides customers with life insurance over a certain term, while whole life insurance provides customers with insurance for their whole lives. Whole life insurance is around eight times more expensive than term life insurance because every customer will receive a payout, whereas term life insurance is rarely offered beyond a customer’s 60th birthday, meaning the majority of customers outlive their policies.