How does life insurance work?

Life insurance explained
May 30, 2017
Is putting your life insurance in trust a good idea?
June 12, 2017

How does life insurance work?

Monday 12 June 2017
Learn about how life insurance works, and how it could benefit you and your family.

You might be considering a life insurance policy, or just curious as to how it works. But before you take one out it’s important to understand exactly what life insurance can do for you.

In a nutshell, a life insurance policy pays out a chosen lump sum upon death or diagnosis of a terminal illness.

It’s a form of protection that, according to the Money Advice Service*, you probably do need if you have children, a spouse, or any other relatives financially dependent on you.

How life insurance helps you and your family

The money paid out by a life insurance policy can be used to provide for your family’s future needs and maintain their lifestyle. For instance, it could be used to cover:

  • Mortgage and debt payment
  • Household bills
  • Childcare costs
  • Education expenses for your children or grandchildren
  • Funeral costs

What’s more, it gives you invaluable peace of mind that they are protected when you’re no longer around – which means you can enjoy the present without having to worry about the future.

How much does life insurance cost?

Premiums for life insurance can vary depending on a number of factors, such as the amount of cover you wish to choose, the length of the policy, your age, your health status, and whether or not you smoke.

But it’s often more affordable than you might think. For a 40 year old non-smoker, £100,000 of life cover over 30 years costs as little as 39p a day.**

The best time to get life insurance

Many people are unaware that the longer you wait to take out a policy, the more expensive your premiums are likely to be. This means that if you find life insurance appealing but wait a few years before getting it, you essentially end up short-changing yourself!

You see, the sooner you get a policy, the more you save in the long-term. It’s a prudent step towards looking after your family’s future and your present finances.

Get a great deal on life insurance today

Don’t delay getting priceless protection for your family. Remember, life insurance:

  • Ensures your loved ones and dependants are financially looked after when you’re no longer around
  • Covers expenses such as funeral costs and mortgage payments
  • Could provide funding for your children or grandchildren’s future education expenses

What’s more, we search through a leading panel of providers to help you find the best deal most suited to your needs.

Find out more by calling us on 01454 857 935.

*Money Advice Service website, correct as of February 2016

**Correct as of February 2017. Chosen from our panel of providers. Based on a non-smoker, and acceptance at standard rates.