What is Life Insurance?
Everybody knows that life is a precious commodity, one that we should not take for granted. However, many of us do not think about life insurance until it is too late. It is hard enough coming to terms with the loss of a loved one without worrying about how the funeral bills are going to get paid. Therefore, it is vital to get the support you and your family need in the event of you or your partners' death.
Why do I need Life Insurance?
There are many reasons why you need to buy life insurance, these include: Mortgage repayments, replacing the primary earner's salary, replacing childcare, education expenses, just to name a few.
What types of Life Insurance are there?
It is very evident from the list above that there are many reasons why you should look around for the best deal on you life insurance. But what type of life cover is there currently around for you to buy which relates best to your specific circumstance.
Life insurance generally comes in the form of 'investment-type' and 'term' insurance, however not all companies offer both. This all depends on the type of company/organisation providing the cover.
An 'Investment-type' life cover is a policy that you usually pay into on a monthly basis. These policies can either pays out fully when you die or a cash amount on an exact date. The sum paid out ultimately depends on the performance of the investments in the insurance fund.
On the other hand, a 'Term' policy guarantees to pay out within a stated period of time (also known as the 'term'). Once the term of the policy runs out a new policy needs to be bought. A term can be for example the duration remaining on your mortgage.
If you want more information on how much life insurance is likely to cost you then it is recommended that you get a quick life insurance cover quote
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