No-one wants to think about what would happen to their loved ones if they were to die, but it’s important that your family and dependents are provided for should the worst happen. Not only will they have lost you and be grieving, they’ll have also lost your income and will still have bills to pay. Wouldn’t it give you peace of mind to know that they were provided for?
In this blog, we’ll look at Life Insurance and what that means.
What is Life Insurance?
Life Insurance is an insurance policy which pays out a lump sum if you die during the term of the policy.
You can have a life insurance policy which is linked to the balance of your mortgage so pays out a lump sum equivalent to the remaining balance at the time of death. Or you can choose to have a ‘level’ life insurance policy which pays out a lump sum of your choosing at the time of your death.
Which one is right for you depends entirely on your personal circumstances, so it’s important to get expert advice so that your protection policies meet your needs.
How does it help?
Life Insurance can provide much needed financial support to you and your family if you are no longer here. Don’t forget, your family may rely on your income from work to pay the bills, and that won’t be there anymore if you’re not. How would they meet continue to meet mortgage payments, rental payments, Council tax, utility bills, etc., without your income?
Life Insurance provides a lump sum if due during the term of the policy, either linked to your mortgage or your children’s dependent years.
How much does it cost?
As with other insurance policies, the cost is paid monthly to the insurance provider via a monthly premium. The cost varies from person to person, depending on a number of factors, such as payout amount, lifestyle (smoking, drinking, height and weight), existing medical conditions, and age. With all this in mind, we’d definitely recommend taking out a life insurance policy at a younger age, and switching to a healthier lifestyle if possible.
When does the policy payout?
A claim has to be made to the insurance provider following your death, usually by the person who will benefit from the policy, so your spouse, partner or dependents. A claims assessor will consider the claim and will make payment if the claim is successful, either to your estate or direct to the beneficiary, depending on the circumstances. As long as you’ve been honest on your application, there should be no issue with the claim.
It’s important that you get expert advice to ensure any payment under your life insurance policy isn’t delayed in getting to those who need it.
Here at Stonebrook Mortgages, we offer advice on a number of different personal protection (or insurance) policies, such as Life Insurance, Critical Illness Cover, Income Protection and Family Income Benefit, amongst others.
You don’t have to be reviewing or applying for a mortgage with us either. We can review your circumstances and/or current insurance policies, and provide you with a bespoke recommendation for you and your family.
We want to make sure you and your family are provided for, no matter what. We have appointments available face-to-face or via Zoom so why not contact us today to discuss your protection needs and receive your bespoke recommendation.