What is Life Insurance Cover?

Life insurance, also known as Life Assurance, is an insurance policy which pays out to the beneficiary when the insured person dies. It is not compulsory when borrowing money, for a mortgage for instance, it is however a wise decision to have for anyone who is relied upon to provide financial support in a family.

 

Loved ones may need to adjust to a new lifestyle as well as having to pay for funeral costs, outstanding debts, mortgages etc. With appropriate Life Insurance cover these financial burdens can be minimised.

In the long term it could pay for the care and maintenance of an elderly parent or a disabled child. It could also cover university expenses and generally keep your loved ones living to the standards they had become accustomed to before your death. There are different types of Life Insurance for different needs. We can advise you on the most suitable cover to protect your needs.

 

For most people the first time they think about life insurance cover is when applying for a mortgage. Most mortgage providers will ask if the borrower is insured to cover the balance of the loan should anything go wrong although during the term of the loan. It is not compulsory but a sensible thing to consider.

 

In business, Life insurance can provide the cover to ensure that a Key Person can be replaced by covering the costs of recruiting and training a replacement, even buying out shares from widowed spouses.  Providing collateral for business loans and fund share agreements, to keep the company’s equity in the right hands.

 

Life insurance being one of the simplest forms of insurance, in that it only pays out in the event of a death. As the insured you really would not want to have to claim as to claim means that something bad has happened.

For a personal illustration on your Life insurance needs call me on 07005938074