Life insurance is a vital and essential factor when considering the wellbeing of your loved ones once you die. As you get older, and move from your early marriage days into your middle life, you’ll certainly go through some physical as well as mental changes. You’ll also have to face up to some serious financial decisions, depending on whether or not you have children, and what age you wish to retire.
For many people, the period after marriage is to start a family, and focus on your financial investments for the future. One of these investments is life insurance, and if you haven’t already entered into a policy agreement, you could be putting your family at financial risk. As you get older, the need for a stable life insurance policy will increase, especially when you have other people depending on you, like your children.
The Benefits of Life Insurance
There are a number of benefits when it comes to life insurance. No one can predict the future, and you must be prepared to look after your loved ones if you suddenly die. There are several types of life insurance cover, most notably critical illness cover, decreasing term life cover, and level term cover – and each come with their own advantages.
Level Term
Level term cover is one of the easiest and straightforward ways to cover yourself. Fixed payments are made every month, and this ensures a lump sum will be paid to your dependants if you die. One of the most important things to remember is that your policy must be valid when you die in order for your family to receive the pay-out. This type of cover gives you the flexibility to determine the length of your policy, and how much you want to pay for it.
Decreasing Term Life Cover
Then there’s decreasing term life cover. Also referred to mortgage insurance, this type of life insurance policy is mainly taken out to ensure that your mortgage repayments are covered in the event of your death – meaning the more you pay off your mortgage, the lower your premiums. If you die, your family will be able to use the life insurance money to pay off the remainder of the mortgage. Make sure you compare life insurance quotes before signing on the dotted line!
Critical Illness Cover
Finally, there’s critical illness cover. This type of cover is needed when an illness threatens your life, and you may not have time to arrange the financial wellbeing of your family. If you’re diagnosed with a critical illness, then this type of cover will provide you with financial protection, meaning your loved ones will not have to run the risk of taking on any debt you leave behind. It can also be used to pay for funeral costs, and any other death related expenses. If you are the main breadwinner in the household, it can also be used to supplement your family’s loss of income.
Life insurance is an easy and effective way to make sure your family and any other beneficiaries are financially looked after in the event of your death, and if you’re looking to take out protective cover, make sure you get medically assessed by your doctor. Your physical and mental condition could impact the amount of protection you may receive.