It’s not easy to confront your own mortality and, while considering life insurance can feel a little gruesome, it’s actually the most important and prudent step you can take to protect your family against the risk of your death in the future.
Difficult as it may be, it is vital to consider financial impact your death would have on those who depend upon you, whether that is your partner and children or your parents.
Would the loss of your income leave your family in financial trouble? Would they be secure in your home, or would they be forced into an unwanted change of circumstances?
Life insurance would provide a monthly income or a lump sum that could secure your family in the event of your death.
There is now more information and more choice in the life insurance market than ever before.
While the huge variety of plans on offer is good news it can be difficult to navigate, so it’s best to be thorough in your research and take professional advice. Do that and you should easily find a plan that fits your particular circumstances.
Entry-level plans are likely to be Whole Life Policies, into which you would pay a monthly premium until you pass away. These typically pay a lump sum to your designated beneficiary – your partner, for example – upon your death.
Endowment Policies are a fixed-term arrangement into which you pay a premium for a pre-determined period of 10, 15 or 20 years. Once that period is up, these can act as a supplement to your pension by releasing a lump sum or a monthly amount.
If you die before the term is up, the funds would be released to your nominated person. More specialized plans are also available which release money for specific purposes like your children’s education or marriage. Andrew Watt from lifeinsurance.org.uk quoted on their company page as saying: “Accidents can happen to anyone, but having life cover will ensure that you or your family don’t suffer financially because of a nasty accident that could leave you out of work for a long period of time”.
In the end, it’s up to you to decide on the policy that best suits your situation. Remember to research your choice carefully and to always seek professional advice before making your decision.
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