Life Insurance

Life insurance provides financial support to you loved ones after your death, typically via a lump sum but can be paid other ways.

Life insurance provides financial protection to the policyholder’s beneficiaries, such as family members or dependents, by providing them with a tax-free lump sum payment upon the insured person’s death. This money can be used to replace lost income, pay off debts, cover funeral expenses, fund education expenses, or maintain the family’s standard of living.

There are two main types of Life Insurance – Term and Whole of Life Insurance.

There are two main types of Life Insurance – Term and Whole of Life Insurance.

Term Life Insurance
These policies have a fixed duration, known as the ‘term’, They only provide a payout if you pass away during the term of the policy.

There are three types of term life insurance policies:

1. Level
2. Decreasing
3. Increasing

Whole of Life Insurance
These policies pay out regardless of when you die, as long as you continue to make premium payments. Whole of Life Insurance is a type of permanent life insurance policy that provides coverage for the entire lifetime of the insured individual.

However, they tend to be more costly than shorter-term policies.

Whole of Life Insurance
These policies pay out regardless of when you die, as long as you continue to make premium payments.

They are commonly used to assist with funeral expenses or for Inheritance Tax planning.

However, they tend to be more costly than shorter-term policies. Additionally, there is a chance that if you live longer than anticipated, you may end up paying more into the policy than you receive in return.

Life Insurance will pay out upon your death or if you are diagnosed with a terminal illness – not if you lose your income due to serious illness or injury. You can find out more about alternative cover here (link).

Life Insurance is designed to help those with but is not limited to as life insurance is for all.

• Dependants to financially care for such as school-age or vulnerable children
• A partner or family that relies on income
• Family who are living in a house with a mortgage that you are responsible for – if you were to die, the payment could go towards paying the mortgage or paying for them to relocate
• Funeral expenses that will need to be paid upon your death.

Like most insurances, Life Insurance premiums will depend on several factors including:

• Type of Policy
• Coverage Amount
• Term Length (for Term Life Insurance
• Age
• Health Status
• Smoking Status

To get an accurate idea of how much life insurance will cost you, it’s best to request quotes from insurance providers. Insurers will assess the individual’s age, health, lifestyle, coverage needs, and other relevant factors to determine the premium amount. Additionally, working with an insurance broker or financial advisor can provide valuable guidance in selecting the right life insurance policy based on individual needs and budget considerations.