Life insurance helps give your family financial protection should any unforeseen event happens in life within the policy term. It lets you leave a lump sum behind – helping your loved ones maintain their living standards or pay mortgage costs. It’s up to you how much cover you want.
Do you need life insurance?
Take the time to consider how much money your loved ones might need to maintain their living standards should any unforeseen events were to happen. This might include costs such as bills, mortgage repayments, school fees, and any other debts you might need to repay.
How long do I need cover for?
When it comes to how long you need cover for, think about how long your kids will need financial support, or when your other half might retire.
Joint or separate life insurance policy?
If you and your partner would like a combined cover, you can take out a joint policy. This pays out only once and won’t provide cover for the second unforeseen incident.
You can also both take out two separate policies. So once a payout for one person takes place, their policy will end. But as they are separate policies, the second person’s policy will still continue.
We offer three different types of life cover: level cover, decreasing cover and Whole of life Cover. Both are term insurance policies – meaning they protect your loved ones for a fixed amount of time.
The type of cover you want may depend on who you want to protect and how much you’d like to pay each month.
Choose a lump sum to leave behind for your loved ones and select how long you want your cover to run for. You’ll then pay the same amount each month until your policy ends.
This lump sum can help to maintain the living standards of loved ones. It could be used to pay off an interest-only mortgage or go towards general living costs and monthly outgoings, such as rent.
The level cover could be a good option if you’re looking to:
Cover your salary.
Maintain your loved ones’ living standards.
Help with health and living costs if you become terminally ill.
Pay your children’s school or university fees.
Continue to keep up mortgage repayments.
You might choose this type of cover to help your loved ones pay off a repayment mortgage or long-term loan if an unforeseen event takes place at any time during the policy term.
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The cover lasts for a specific length of time, and your monthly premiums are fixed, unless you make any changes to your policy.
· The value of what you are paying off gradually decreases over time, and so does the cover. That is why it usually costs less than level cover.
Whole life insurance provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate on a tax-advantaged basis. These policies may be known as “traditional” life insurance.
Whole life insurance policies are one type of permanent life insurance. Universal life, indexed universal life, and variable universal life are others. Whole life insurance is the original life insurance policy, but whole life does not equal permanent life insurance.
KEY TAKEAWAYS
Whole life insurance lasts for a policyholder’s lifetime, as opposed to term life insurance, which is for a specific number of years.
Whole life insurance is paid out to a beneficiary or beneficiaries upon the policyholder’s death, provided that the premium payments were maintained.
Whole life insurance pays a death benefit, but also has a savings component in which cash can build up.
The savings component can be invested; additionally, the policyholder can access the cash while alive, by either withdrawing or borrowing against it, when needed.
