Choosing the right life insurance can be tricky. There is often so much small print and it can be hard to work out what is, and isn’t, included.
At Goldmanread we act as a bridge between you and trusted insurance providers to make sure that in the event of your death your family will be financially protected. After all, it’s hard enough coping with the loss of a loved one without adding money worries.
Life Insurance: the Lowdown
Life insurance is normally the most economical way of providing for your family (or a business partner) after your death. The policy pays out a lump sum if you die within a pre-specified period of time.
There are a number of reasons for taking out life insurance including:
- Mortgage repayments
- Raising children
- Education costs
There are a number of different life insurance policies to take into consideration:
Level term life insurance: this is where the same level of coverage is maintained throughout the term of the policy. This can be taken out in conjunction with an interest only mortgage
Decreasing term assurance: this policy pays out an assured sum which reduces during the lifespan of the plan. This is usually used to protect mortgage repayments.
Convertible term assurance: during this policy the assured sum stays the same although for an additional fee you have the option of changing the plan, or part of it, to another policy.
Family income benefit (FIB): this provides a tax-free regular income which, should you die, is paid out until the insurance policy ends. This acts a replacement income and may be index-linked to inflation.
Death in service benefit: this may be provided by your employer if you die whilst under their employ.
Critical illness: if you’ve been diagnosed with a critical illness that is covered by your plan, the policy will pay out lump sum.