Insight from the experts: Life Insurance

Life Insurance is designed to protect your family financially when you can no longer do that. There are very few people that wouldn’t feel its benefits, even those without children. 

Whilst different types of protection work in different ways, Life Insurance is a tax-free lump sum given to your dependents after you die. But not all policies last a lifetime, so when you come to buy your policy you’ll be able to choose whether you want a term policy that covers you for a set amount of time, for example until your little ones fly the nest or until your mortgage is paid off or you want a whole life policy that covers you until you die, no matter when that is. 

Going through a broker will allow you to find a policy that closely caters to your needs. You’ll be able to find cover for many different situations so that your cover will, well, cover you. 

There are many types of Life Insurance policies to choose from. A term Life Insurance policy might be more suitable for those concerned about covering specific costs and not leaving their loved ones with big bills left to pay - plus, it’s the less expensive option as you’re less likely to ‘pop your clogs’ during the term covered by the policy. 

That’s not to say that a whole of life policy can’t be useful despite it being more pricey. It buys you that peace of mind for your entire life and means you’re guaranteed financial help for your family, even if your children are old and grey by that point. 

There’s also the matter of whether a decreasing or level term policy would be more useful to you. Decreasing term policies are handy old things, made to cover a debt that decreases over time, like a mortgage repayment. The amount your family will be paid if you pass away decreases year by year, but the monthly premiums you pay tend to be substantially cheaper.

A level term policy is consistent throughout the length of the policy, whether it’s fixed-term or whole of life cover. This means that no matter when you pass away during your policy term, your family will still receive the amount you settled on when you bought your policy. Whilst this might sound like a better deal, it’s worth noting that it’s certainly not quite so easy on your wallet. 

If you need a little help figuring out how to tailor your policy to your situation, brokers like LifeSearch can help take you through an advised process to make sure you find the cover that suits your situation in every way. 

If you’ve got large savings, a partner whose salary can carry the load or great employment benefits, then it’s true that Life Insurance might not be the best use of your money. If you’re not lucky enough to have these to rely on, then Life Insurance might well feel pretty close to a necessity. 

If you have kids, you probably don’t need reminding how costly raising them can be - from nappies to driving lessons, everything costs money. Raising them comfortably can be difficult if you run into hard times, even on two salaries.

But we know that having a family is a joy - even when things are hard. That’s why it’s so vital to protect them and go on protecting them even when you’re not around. By taking out a Life Insurance policy, you’re letting them know you’ll protect the lives they love for as long as you can. You can rest easy in the knowledge that you’ve made the best choice for them. 

Even if you don’t have kids, that doesn’t mean there aren’t people in your life who need protecting. If you have a partner who relies on your income to cover some of the rent, or the mortgage, or the car payments, or shared debts, then they depend on you just as much as kids might do. The same goes for elderly relatives or parents in care homes. If they couldn’t cope financially without you, it’s worth re-evaluating life insurance and starting to think of it as a necessity. 

LifeSearch was established in 1998, and since then, has grown into the UK’s largest life insurance broker. LifeSearch specialises in life insurance, critical illness cover, income protection and other forms of life cover.

LifeSearch has won numerous awards, and is recommended by MoneySuperMarket, Bank of Scotland, Halifax, Lloyds Bank and Compare the Market.

If you are looking for advice or quotes for Life Insurance, visit LifeSearch’s website or give them a call on 0203 764 0074.