Life insurance is the kind of issue which most of the people seem to ignore until some unpleasant happenings occurs around them. Have you ever thought what will your beloved ones do after you die? Do they have enough financial cover which will support them after your demise? Will your children be able to attend the best educational institution? As the main earner of the family, it is your responsibility to think about all these situations and act as early as possible. This way you and your family can get the peace of mind.
What is Life Insurance?
Simply put, life insurance is the contract between a person and the insurance company, in which the insurance company pays out a fixed amount in lump sum to the beneficiaries of the policy in the event of the death of the person insured. This insurance amount is paid when the insured person has paid regular premiums during the term of policy. This insurance amount can be paid to the beneficiary in instalments also as is mentioned in the contract. While planning finances of your family, a life insurance policy is very important financial instrument, you can have. A UK life insurance policy acts like a true friend for your family in times of their financial crisis after your demise.
Benefits of having a Life Insurance Policy:
Some of the most apparent advantages of a life Insurance policy are
o The policy ensures provision of cash for financial needs, immediately after the death of the insured person.
o It also ensures regular flow of funds thereafter.
o It provides for education of children
o You can arrange for mortgage payments
o It can act as pension when clubbed with retirement income
o Also you can have saving plan for future needs
o Can provide for childcare in case primary childcare dies.
Who should be covered?
This is not only prime earner of the family who needs to have life insurance policy. In fact, in a family of small children, other spouse who takes care of all household chores including childcare also needs a life insurance policy. In case he or she dies, replacing child care can be very expensive.
Factors to Consider before you choose a Life Insurance Policy
Before choosing a policy, you should consider few factors such as kind of cover need or how much cover you should arrange for. Do you need only life insurance cover or critical illness cover? You should also consider the tax part.
To choose right Life Insurance policy, you should decide about the amount of cover you need. Will your family need complete financial support after your demise? Do you want to replace for your income? Or you want to arrange for the mortgage payments or for children education?
There are many kinds of life insurance policies are available in the UK insurance market. You can choose one according to your needs. Finding a right life insurance policy online has never been so easy.
Vaneet Gupta is an expert on the subject of insurance and has written variety of articles related to insurance.
Article Source: http://EzineArticles.com/?expert=Vaneet_Gupta
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