Thursday, February 19, 2009

Life Insurance – the Who, Why, What, Where and When

Who needs life insurance?

Anyone in dangerous jobs and those with large and/or young families, gain more from being insured than anyone else. Young, single folk with no obligations or dependants may not require as much cover, and therefore may decide to wait until they have a family or commitments such as a mortgage.

Why get life insurance?

If you have a mortgage or other financial commitments, a family or dependents, it’s worth getting yourself insured. Life insurance can pay for funeral expenses, pay off your mortgage, provide for your family during the worse periods, and generally give peace of mind all round. Each policy is different, so shop around and read the small print to find one that suits you with the level of cover you need.

What type of life insurance?

Level term insurance lasts for a fixed amount of time, and will pay out a guaranteed sum upon death – if the death occurs before the policy ends. You can also get this type of insurance converted to a whole life or endowment policy at the end of the term.

Decreasing term assurance is similar, but the sum payable decreased each year. This is sometimes used to protect mortgage interest payments.

The opposite to the above, an increasing term takes into account inflation and the value of money decreasing, therefore the final sum increases with time.

Where should I get life insurance?

There are many companies out there offering life assurance, so it’s worth shopping around to find the best deal. Read up as much as you can about it beforehand, perhaps make a list of things that it’s important for your policy to have, before committing to any one company. Don’t be afraid to collect quotes.

When should I get life insurance?

As soon as you have a family and gain financial commitments, then it’s time to think about it. Try to imagine who or what you’d be leaving behind – can they cope without you? If the answer is no, start looking into cover.


MrC said...

I would recommend a company called Rainbow found at to anyone looking for life insurance. I used this company and they saved me quite a bit on my monthly payments in comparison with other companies out there

Twitter Delicious Facebook Digg Stumbleupon Favorites More

Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | GreenGeeks Review