From car cover to buildings and contents protection, the chances are you already have a range of insurance policies in place. One form of cover you may not already have though - and one that could prove to be very useful - is life insurance. Keep reading to discover more about this type of financial protection, and to find out if it could benefit you.
What is it?
Basically, life insurance provides your dependents with money in the event of your death. This money can be given either in a lump sum or as regular payments. There are a wide range of different policies to choose from, each with their specific features. Bear in mind that the amount of money paid out depends on the type of policy you opt for and the level of cover you buy. The two main forms of life cover are term policies, which run for a
predetermined period of time, and whole-of-life policies. You can also incorporate extras into these financial products. For example, LifePlan from RL360° gives you the option to include critical illness cover. You can find out more about the policy variations on offer by doing some research online.
Do you need this form of financial protection?
Especially if you’re looking for ways to keep your bills down, you might be tempted to put off paying for this type of insurance. However, if you have dependents who rely on your income, you may need to purchase one of these policies. For example, life insurance can be crucial if you have school-aged children or a partner who would struggle to cover household expenses by themselves. You may also need one of these policies if you have family members living in a house that you pay the mortgage for.
In contrast, if you’re single or you have a partner who earns enough to provide for your family, you might not require life cover.
Are you already covered through your work?
Bear in mind that if you’re employed, you may already have some form of life insurance in place. It’s possible that your remuneration package includes a ‘death in service’ benefit that would provide a specified multiple of your salary to your family if you died, so it’s worth reading through your employment contract carefully. However, even if you do have a package like this, you may find that it’s not sufficient to meet your family’s needs. If this is the case, it’s worth getting top up cover. Also, bear in mind that if you cease working for your employer, you will no longer be covered under their policy.
Not everyone needs life cover, but if you are one of the people who does, it’s vital that you take steps to secure this form of financial protection.
Until next time,
Jada x
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