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| Young family (c) Rex 2008 |
Is your family your life? Well – what happens when you die? Find out what a life insurance policy could mean for you and your family
The UK is currently facing a yawning “protection gap” that sees Britons underinsured by as much as £2.3trn. This means many families will be left to struggle with the financial, as well as the emotional fallout, should a loved one die
Taking out life insurance, however, can help to make sure that should the worst happen, our families aren’t left with a pile of debts or a giant mortgage to cope with, or no way to afford the school fees. It can help to provide the cash they need to rebuild their lives.
Get good cover
What is life insurance?
Also known as life assurance or term assurance, life insurance essentially provides a safety net for those close to you in the event of your death. In return for paying in small regular premiums for the life of the policy, life insurance will pay out a lump sum of cash if the policyholder should die, or be diagnosed with a terminal illness.
While taking out life insurance can be beneficial at any point in life, there are some typical life-stages when it makes particularly good sense to review just how prepared you are for the worst.
Newlyweds
“In sickness and in health…” – after walking down the aisle you now have a “significant other” to think about in life, including working out how they will cope if something should happen to you.
If you have a lot of debts, or your husband or wife relies on the income you bring in to get by, life cover can help to soften the financial blow of the loss and give them a financial buffer until they can get back on their feet.
by Sonia Speedy
