While most of us tend to put off thinking about life insurance
it is important that you make sure loved ones will be left
financially secure in the event of your death - and the solution
could be a whole life insurance policy.
However, with so many different types of life assurance and life
insurance, it is no wonder that people get confused as to what
life insurance is and what the different types mean. Simply
speaking, life insurance pays out a lump sum upon your death
which will help your family continue to pay the bills and have a
roof over their head.
And if you are still not convinced about life insurance, digest
the following - if you have a mortgage or rent to pay, a spouse
or a partner and/ or dependants, then how would they cope if
they suddenly did not have your salary to pay your bills? Would
they be able to afford to keep a roof over their heads or carry
on living the same lifestyle without your wage? And, most
importantly, would you want them to have financial difficulty
added to their grief?
A life insurance - or life assurance - policy is the solution to
this and can offer peace of mind that your financial affairs are
in order in the event of your death.
A Whole Life Insurance Policy is exactly what it says - you are
insured for the whole of your life with the total sum assured
being payable upon your death. There are various versions of
Whole Life Policies - for example, some offer a 'With Profits'
option where your dependants get the guaranteed sum insured upon
your death plus bonuses.
With a term life insurance policy you are insured for a set
period of and if you die during the policy term, the insurer
will pay out a lump sum. However, should you survive the policy
term, the policy has no value whatsoever - it cannot be cashed
in, nor can a claim cant be made after the end of the policy
term.
It is always a good idea to investigate the different types of
life insurance available to ensure you get the level of cover
you need.
|
Categories 
