None of us knows what life has in store for us, and the financial implications should you die unexpectedly have the potential to make life challenging for those you leave behind – especially if you’re the main breadwinner in the family.
Life insurance is designed to give your family a tax-free lump sum that helps to minimise the impact that your death might have.
It can be used to pay off, or significantly contribute to reducing, large financial commitments such as your mortgage or long-term credit agreements or can be invested to generate a regular income.
Typically, life insurance is paid out on death or on diagnosis of a terminal illness where life expectancy is estimated at 12 months or less – and knowing you’ll have cash available while you might be undergoing treatment can be very reassuring.
The amount that’s paid out on a life insurance policy is determined by you at the start of the cover and remains fixed unless you amend the policy at a later date. That means the lump sum you receive isn’t affected positively or negatively by interest rates, offering certainty if a claim needs to be made.
You have complete control over the amount your life is insured for and how long you need the cover. Many people choose to have cover for the life of their mortgage, but the duration of cover is flexible.
If you’re married or have a life partner, you can choose to insure your lives jointly – meaning the policy pays out on the first death – or individually, which means separate payments for each life insured.
Payments for life insurance cover are usually made monthly, but in some cases may be paid annually.
If you have significant financial commitments and/or have dependents who rely on you for their financial security, it pays to consider taking out a life insurance policy to ensure everyone has the peace of mind that comes from knowing the future is secure.
If you’d like to know more about our life cover options, please contact us – our friendly team would be delighted to help you find the financial security you need.