Life Insurance will give a cash payout either as a lump sum or regular payments to those who might financially suffer as a result of your death or if you’re diagnosed with a terminal illness.
What are the main types of Life Insurance?
Term Assurance Policies
This is the most basic type of cover. It allows you to specify how much cover you want and how long you would like to be covered for – if you die within that term, the policy will pay out. In many cases, a combination of cover options may be the most suitable, this is something that The Mortgage Brokerage can help with.
Whole of Life Policies
A Whole Life Policy provides you with cover for your whole life and will pay out on your death, no matter when that may be. This means that there is a guaranteed payout, making this type of policy more expensive than those with a set term.
Family Income Benefit Policies
This is a decreasing term policy and is paid out of a regular monthly income, rather than a lump sum which aims to replace lost income if the person insured dies. This eases the burden of bills and makes budgeting more manageable.
Who is Life Insurance a benefit for?
Life Insurance is designed to protect your loved ones’ finances should you pass away during the term of the policy, such as reducing the disruption of losing a loved one or helping to compensate for a loss of earnings for those you leave behind.
Likewise, your Life Insurance policy can be used to help pay for your final expenses after you pass away, for instance funeral or cremation costs.
How does it work?
To sum up, you have to pay a premium to your insurance provider for the duration of your policy, and on your death, whether natural or accidental, your beneficiaries will receive a payout.
Typically your policy will either expire after a certain period of time or it will last until you pass away.
Failing to pay your Life Insurance premiums can lead to your policy lapsing and no payout being made upon your passing.
What if I am unemployed?
Even if you are unemployed you can still buy Life Insurance. The amount that you can purchase will depend on a number of factors including:
- The amount of cover you need
- How long you have been unemployed
- Why you are unemployed
- If you have a spouse and how much they earn
- The assets you currently have
If you have been unemployed for a prolonged period of time and it is unclear where the money premiums will come from, then your Life Insurance application may be postponed or declined. For more information on this please give us a call.
How much does it cost?
How much you pay for Life Insurance per month will depend on your own circumstances and how much cover you will need.
The following variables will affect this:
- The amount of cover you need
- The type of policy you require
- The Life Insurance term
- Your age
- Your health
- Your lifestyle (including smoker status)
How can The Mortgage Brokerage help?
Life Insurance is a way to give your loved ones a financial safety net if you’re no longer around to provide for them anymore.
Here at The Mortgage Brokerage, our advisers can help to create a clear picture of your options and advise as to which policy is best suited to your individual circumstances.
Life Insurance can be a highly sensitive topic, but it can help to provide a more secure financial future for your family should the unexpected happen.