Life insurance can be an uncomfortable subject to deal with as it involves thinking about the untimely death of a loved one. However, it is the cornerstone to any good financial plan and an area that is often overlooked.
Life Insurance
If there is someone who will suffer financially in the event of your death, then it is very likely you need some form of life insurance
Why Do You Need Life Insurance?
- Have you thought about how your family would survive if you were no longer around?
- Will they be able to afford the mortgage?
- Could your kids still attend University?
- Would there be enough money to pay all of the bills and taxes that occur on your death?
These are just a few of the important questions that you can answer with good life insurance planning.
Choosing The Right Insurance
There are many forms of life insurance to protect you and your family in different ways. The type and amount of life insurance that you need will depend on several factors; your current assets, the number of dependents you have and the cost of the insurance.
Term Insurance
This is the most basic and common form of insurance. It means that if you die an amount will be paid out to your family. This is the cheapest form of life insurance and the cost will generally depend on your age, health and the sum assured. As the name would suggest this insurance has a term, a length of time it lasts, which is typically to age 65.
Income Protection
Income protection provides you with a monthly benefit when you are unable to work due to an accident, illness, or unemployment. Very few people take out this type of insurance even though research shows only 12% of employers support their staff for more than a year if they are off sick from work. This can be an inexpensive way to protect your families income stream.
Whole of Life
This can also be referred to as Universal Life Insurance and unlike term insurance this type of plan will cover you to a maximum age of 95. Whole of life insurance has a cash value which can be redeemed at anytime and this means it is more flexible than term insurance. This type of insurance is often used for inheritance tax planning.
Critical Illness
Critical illness insurance will pay a lump sum on the diagnosis of a terminal illness such as cancer. This will allow you to cover the costs of treatment and provide you with the option of seeking the best treatment available. We are far more likely to die from a critical illness than natural causes, and with the average life expectancy growing rapidly, this is becoming far more prevalent.
Is life insurance a bad investment?
We often hear people say that life insurance is the worst investment in the world because the only time you get a return is when you are dead. While there is obvious fact in this statement, the sentiment is wrong.
Life insurance is one of the best ways to leverage your money for the future. Leverage is a way of maximising the power of your money. It provides a way to buy money today at a deep discount, which can then be paid out in the future.
Contact Us
Take the first step towards protection your family with the right insurance and contact one of our professional advisors.
Our dedicated team will help to guide you through every stage of the process and put you on the right path to achieving your goals.
