Life InsurancePays out a sum of money in the event of your death
What is Life Insurance?
Life insurance (also known as life assurance, life cover or death cover) is essentially a policy that pays out a lump sum of money to your dependants in the event of your death.
The policy will usually pay out no matter what the cause of death, as long as accurate and honest personal details are provided when the insurance is taken out. The amount of money paid out depends on the level of cover you decide to buy.
Do I need life insurance?
Life insurance offers a relatively cheap and straightforward way of ensuring that the financial needs of your family or any other dependants are met in the event of your death.
No one really wants to think about life insurance. But if someone depends on you financially, it’s a topic you can’t avoid. In the event of a tragedy, life insurance proceeds can:
- Pay for funeral costs
- Help pay the bills and meet ongoing living expenses
- Pay off outstanding debt, including credit cards and the mortgage
- Continue a family business
- Finance future needs like your children’s education
- Protect a spouse’s retirement plans