What is Life Cover really for? It is usually taken out for two reasons:
1) To clear a mortgage and/or debts.
2) To provide a lump sum or an income for a partner and/or child in the event of a person’s death.
However, the real reason for taking out Life Cover is to provide you with peace of mind by ensuring that your loved ones are taken care of and are able to maintain a particular lifestyle in the event of your death. It will enable them to remain in the family home without having to move and downsize. Another reason why Life Cover is an important thing to think about is to make sure that enough money is provided to your partner to ensure that your children can continue the hobbies and clubs they regularly attend and to make sure that your partner doesn’t have to increase the number of hours that they work just to make ends meet. The purpose of Life Insurance is to assist in the children’s education and provide the whole family with a stable and consistent life.
The only way to be sure if you have the most beneficial insurances in place is to get advice from a qualified professional broker. A whole of market adviser, like us at Evolution Forces Families, have access to all the providers accessible online, off line and on the high street.
The type of cover, amount of cover and over which period the policy should be taken, depends on several factors; the age of your children, the term of your mortgage, your future wishes for your family, the amount of any debts you have, your expenditure, your own age, the type of mortgage you have and potentially your tax liability.
There are four types of policies available with life cover:
1) term assurance or level cover;
2) decreasing cover;
3) family income benefit;
4) whole of life cover.
There are also other factors to consider, for example, are you a business owner? Would a relevant life policy or a key man insurance policy be more relevant and tax efficient for you?
Does your family require more than just life insurance? What sick pay cover do you get from work and how long does this pay out for? What backup money do you have (if any) and how long would that last for?
As insurance brokers, we can provide our clients with full advice and recommendations on all of these matters. We are fully regulated by the Financial Conduct Authority and we offer free consultations and advice, and will assist you in completing any paperwork and getting your policy active.
If this is something that we can help you with, please don’t hesitate to get in touch by calling us on 0330 3322 614 (local rate) or emailing us at firstname.lastname@example.org.