What is Life Insurance?
Life insurance is one of the simpler products to understand, providing you have an eligible claim the policy will pay out a lump sum on death.
Life insurance can be set up in various ways which is when you may start to think it is getting confusing.
There are a few things to consider; how much cover do you need? How long do you need it for? The amount and how long for determine how much you pay.
There are broadly two types:
Term Life Insurance covers you for a specific period which is selected when you take out the policy, e.g. 20 years – it covers you if you die within a set period and will pay out a lump sum.
Whole of Life Insurance will guarantee a pay-out whenever you die and is therefore more expensive
The amount of cover will be down to how much debt you have, such as a mortgage or how much you want to leave to loved ones.
To simplify things, I would say you need to decide if you want Mortgage Protection or Lifestyle Protection.
Mortgage will pay off the mortgage in full and lifestyle protection will provide for loves ones, the amount you could select here may be 5 times your salary for example.
There are other factors to consider with Life Insurance, there are also lots of options online when it comes to, just bear in mind you get what you pay for and that is why we recommend speaking to an expert.
For help and advice, get in touch today.