Searching for life insurance advice? Are you considering taking out life insurance to protect your family?
Choosing the right policy for your needs requires a good amount of research. Why? To ensure you have the protection you need and make the most of your money.
In this short guide, we will introduce to you some of the common types of life insurance. In addition, we’ll also offer some valuable life insurance advice.
If your income is relied upon by family members or a partner, then Life insurance is absolutely essential. In the most part, for protecting your loved ones financially if the worst were to happen.
Life insurance will ensure any outstanding debts, such as your mortgage, can be paid off as well as maintain your family’s lifestyle.
Before choosing a policy, you need to work out how much cover you need to ensure your family’s financial stability.
This figure will include living expenses along with outstanding liabilities, including your mortgage.
This type of policy will pay out a pre-agreed sum if you die during the agreed term.
Level term insurance has the benefit of simplicity and affordability and best suits people with dependents and an interest only mortgage.
This type of policy will usually last the length of your mortgage and will pay out if you die during the agreed term.
Decreasing term insurance, like level term, is usually an affordable option. However, typically this covers your mortgage balance only. So if you’re looking for a policy to cover lifestyle costs as well outstanding liabilities, we recommend a level term policy.
Family income benefit insurance
Available as either a decreasing term of level term policy, policies of this type will pay out as a regular monthly payment for the remaining length of the term.
You may wish to make the monthly figure match your current salary to ensure your loved ones can continue their current lifestyle.
There is an obvious drawback with such policies in that if you die towards the end of the term, the policy will not pay out for very long. However, this usually comes with a lower cost so is a great option for those on a budget.
Whole of life insurance
If you need a more comprehensive policy, whole of life insurance could be your best option. As the name suggests, this type of policy will pay out no matter when you die.
This comes with a higher price tag but is a great option for those thinking about funeral costs and inheritance tax planning.
Joint Life Policies
Many people who approach us for life insurance advice ask if they should take out a single life or joint life policy.
Joint life policies are generally more affordable however you should consider yours and the other person’s current health and cover needs to make sure that this is the most appropriate option.
Seeking life insurance advice will help you make this decision and ensure you take out the best policy that will work for both of you.
Seven Bridges is a family run life insurance advice specialist. Our clients benefit from our years of experience in the insurance sector and broad knowledge of the marketplace.
We guide you through all of the available options to find the ideal policy and provide for your needs and budget. Contact us here to find out more.