Life insurance is one financial strategy that individuals utilize to cater for the needs of their family members and loved ones. It gives these beneficiaries a level of peace and financial comfort, knowing that they are not alone even after the demise of the policyholder. Many people have heard of the term “life insurance”, but only a few know what it is. A life insurance policy is a contract established between an insurance company and a policyholder based on the type of insurance policy, amount of cover, and the length term. Should the policyholder die suddenly or develop a terminal illness during the contract period, the beneficiaries will be paid a lump sum of money.
Why Do I Need An Insurance Policy?
No one prays to die young. However, you can’t predict what happens next. For this reason, it is important to secure the future of your loved ones. It is devastating to lose a loved one, especially if such a person is the breadwinner of the family. However, it gets worse when there is no financial support in such trying situations. The last thing you want is to leave your family financially stranded. For this reason, it is important to have a life insurance policy.
How Can I Purchase A Life Insurance Policy?
Anyone can own a life insurance policy – and it is recommended. The process is fast and simple. One of easiest ways is to purchase life insurance online. Once online, you can request a quote from the insurance expert. You will be provided with a form to fill – this will contain your personal information and the type of insurance you want (level term life insurance or decreasing term life insurance). As soon as you complete and submit the form, a broker will contact you to discuss the insurance policy you have chosen.
How Much Does It Cost?
Life insurance policies are not expensive. They can meet any budget size. You can own a life insurance policy for as low as £5 per month. However, this would vary based on certain factors included below:
- Your age
- The type of insurance policy
- The policy term length (duration of cover)
- The amount of cover for the insurance policy
- Your health
- And your lifestyle, among which includes smoking status.
These details will help the insurance company provide accurate information on your insurance policy.
What Are The Benefits Of Life Insurance?
Life insurance can provide your loved ones and relatives with a financial cover. The payout can help meet various needs like funeral cost, food shopping, debts, and many more.
Loss Of Income
We all have dependents that earn part of their incomes from us. Having a level term life insurance policy can provide them with income when we are no longer alive.
Mortgage Protection
The challenges most families face when the earner dies is the overwhelming burden of mortgage and other debts. Most of them risk the chance of losing their homes in such situations. However, this can be averted by getting a decreasing term life insurance policy.
Education
Having a life insurance policy can help cater for your children’s education in your absence.
These are just a few out of the many applications of life insurance. Secure the future of your dependents by getting one.