Guide to UK
Life Insurance
What is life insurance?
Life insurance is a policy that pays out
a lump sum when the policyholder dies. Its aim is to prevent
the dead person’s partner or family from struggling
financially.
It is often referred to as life “assurance”.
This is because assurance covers for an event that will
definitely happen and – like it or not- you will die
at some point.
The correct use of the term “insurance” refers
to events that might or might not happen. Saying that, life
insurance and life assurance tend to mean the same thing.
The “sum assured” is the amount
or cover you have or the amount the policy will pay out
when you die.
Who needs Life Insurance / Assurance?
You only really need life insurance if you are married and/or
have children.
The idea is the payout will support your family financially
if you die at a time when they are relying on your salary.
Reasons to take out life insurance include:
- To cover mortgage repayments
- To replace your salary
- To pay childcare expenses
- To pay education expenses
If you are young, free and single then there is no real
need to have life insurance.
However other types of insurance such as
critical
illness insurance or income protection might be a good
idea as these will cover your financial commitments if you
are unable to work for certain reasons.
Who provides life insurance?
Insurance companies, mortgage lenders and banks typically
provide life insurance but it is a good idea to shop
around rather than just go with the first product
you are offered.
Financial advisers and insurance brokers also sell life
insurance and can do the shopping around for you.
Read On
What is life insurance?
Who needs Life Insurance?
Who provides life insurance?
Types of life insurance
How much does life insurance
cost?
Tips / Do's and don'ts for
getting life insurance
Summary of Level Term
Insurance Policies
Would you like to get a quick
free quote now?
To get your best UK
life insurance quotes you need to shop around.
A good way to do this is to get a quote from an IFA or specialist
insurance broker. They have software which tells them instantly
what the best deal is for you. If you don't know a good
broker we can put you in contact with one via our quick
enquiry form This quote is free and there is no obligation
at all to proceed with anything.
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