Do I need Life Insurance?
Life insurance can offer 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. It may be necessary, depending on the situation, for the parents of school-age children to have life cover and this requirement may also be necessary for single parents (again dependant on the situation). Couples without dependants may still wish to protect their partner and some people simply want a policy which will ensure that their funeral costs can be met.
To find out more simply give Albany Park Finance a call on 0203 540 5800 – or request a quote using our online form. We offer friendly, expert assistance over the phone, and a member of our fully-trained team will call you back to discuss your needs more fully.
What is Life Insurance?
Life insurance is essentially a policy that pays out a lump sum of money in the event of your death. Some policies will pay out no matter what the cause of death – natural, medical, accidental or through suicide – as long as personal details are provided honestly when the insurance is taken out. Please ensure you review the terms and conditions of the policy as everyone is different.
Life insurance cannot bring back a loved one, but it can prevent a family’s grief being made even worse by the misery of financial hardship if a vital breadwinner is lost. It ensures that mortgage payments, credit card debts and weekly shopping bills can still be covered. Depending on the level of cover it may also meet other expenses such as university fees or wedding costs.
Because life insurance only pays out on death it is still advisable to consider additional polices such as critical illness cover – which can sometimes be built into life cover – or income protection. But basic life insurance offers immediate peace of mind from knowing that your family’s financial security is guaranteed should the worst happen.
For more information call Albany Park Finance on 0203 540 5800 – or request a quote using our online form. We offer friendly, expert assistance over the phone, and a member of our fully-trained team will call you back to discuss your needs more fully.
Types of Life Insurance
The two most popular types of life insurance are level term assurance and decreasing term assurance:
Level term assurance pays out to your dependants if you die within a fixed term which is chosen by you – 25 years, for example. The premiums stay the same – as does the payout whether you die on the first day or the last day of the policy.
Decreasing term assurance is usually aimed at covering the remaining debt on a repayment mortgage if you die within a set number of years. The payout decreases over the policy term, usually in line with the remaining mortgage debt.
Within these policies, couples must also decide whether they wish to take out joint cover, or two single life policies. Joint cover is cheaper, but only pays out once when the first partner dies. Two single policies should provide a greater level of protection to other dependants.
The alternative to these term assurance policies is a whole of life policy which guarantees to pay out regardless of when you die – whether it be the day after you take out the policy or at the age of 103! One specific type of low-cost whole life insurance is the over-50s policy, mainly designed for those looking to cover the cost of their funeral and little else.
If you’re interested in life insurance why not give Albany Park Finance a call on 0203 540 5800 – or request a quote using our online form? We offer friendly, expert assistance over the phone, and a member of our fully-trained team will call you back to discuss your needs more fully. We’ll find the most suitable policy for you and get you the best-possible discounted deal.