Thinking about your life insurance needs may not be the most cheerful of tasks, but arguably it’s one of the most important financial products anyone can take out, and one of the best ways of leaving loved ones provided for financially.
Life insurance provides a lump sum on death, often optionally including diagnosis of a specified critical illness, whilst wider protection cover can help provide an income for families hit by an accident or sickness.
What do you need to cover?
There is no one-size-fits-all answer to this question; the answer will depend on your personal circumstances, but there are some common scenarios. As it’s often their single biggest outgoing, many people are concerned to protect their mortgage, and provide funds to help their loved ones maintain a good standard of living if they were to die.
Parents undertake many unpaid responsibilities, including childcare, cooking and cleaning, and often want to ensure that there would be money available to provide these vital services if they were no longer around. Then there’s education – an insurance payout could ensure that children are able to continue at the same school, or can afford to go to university.
Critical illness insurance can provide a cash sum on the diagnosis of a serious illness during the policy term, and can often be combined with life insurance. Income protection insurance is a popular choice too. These policies are designed to payout if the policyholder is unable to work and earn money due to illness or injury, and, in some cases, forced unemployment.
There’s a wide range of policies and benefits available; talking to us will help you make the right choice.