We would rather not think of the time when we’re no longer around. But it’s important to protect the things that really matter \u2013 like our loved ones, home and lifestyle \u2013 in case the unexpected happens.<\/p>\n
Life insurance (sometimes called \u2018life cover\u2019) is all about making sure your dependants have the money they need if you were no longer around. Its most important function is to replace the earnings that would cease at the death of the insured.<\/p>\n
Losing your current and future income<\/strong> Unless you’re independently wealthy, achieving these goals may be virtually impossible for your family with the loss of your steady income. Life insurance offers a way for your family to continue living comfortably and without worry.<\/p>\n Helps you\u00a0to financially\u00a0protect your\u00a0family<\/strong> Life insurance helps you\u00a0to financially\u00a0protect your\u00a0family.\u00a0It\u00a0could pay\u00a0out a cash sum if you die while covered by the policy. You choose the amount of life cover you need and how long you need it for, and you can pay your premiums monthly or annually.<\/p>\n Coping financially during an otherwise difficult time<\/strong> We never know what life has in store for us, so it\u2019s important to get the right life insurance policy. A good place to start is asking yourself three questions: what do I need to protect? How much cover do I need? How long will I need cover for? This sum must take into account their living costs, as well as any outstanding liabilities, such as a mortgage.<\/p>\n Obtaining the right advice and knowing which option to choose <\/strong> Life insurance makes sure they’re taken care of financially if you die. So whether you’re looking to provide a financial safety net for your loved ones, moving house or a first-time buyer looking to arrange your mortgage life insurance \u2013 or simply wanting to add some cover to what you’ve already got \u2013 you’ll want to make sure you choose the right type of cover. That’s why obtaining the right advice and knowing which option to choose\u00a0\u2013 including the most suitable sum assured, premium, terms and payment provisions\u00a0\u2013 is essential.<\/p>\n Reaching different stages in your life that require protection<\/strong> As you reach different stages in your life, the need for protection will inevitably change. How much life insurance you need really depends on your circumstances \u2013 for example, whether you\u2019ve got a mortgage,\u00a0you\u2019re single\u00a0or have children. Before you\u00a0compare life insurance, it’s worth bearing in mind that the amount of cover you need will very much depend on your own personal circumstances, such as the needs of your family and dependants.<\/p>\n What you need to ask yourself:<\/strong><\/p>\n Who are your financial dependants \u2013 your husband or wife, registered civil partner, children, brother, sister, or parents? There is no one-size-fits-all solution, and the amount of cover \u2013 as well as how long it lasts for \u2013 will vary from person to person.<\/p>\n These are some events when you should consider reviewing your life insurance requirements:<\/strong><\/p>\n Buying your first home with a partner Enable loved ones to maintain their current standard of living<\/strong> If you have a spouse, partner or children, you should have sufficient protection to pay off your mortgage and any other liabilities. After that, you may need life insurance to replace at least some of your income. How much money a family needs will vary from household to household, so ultimately it’s up to you to decide how much money you would like to leave your family that would enable them to maintain their current standard of living.<\/p>\n Types of life insurance<\/strong> The other type of protection available is a whole-of-life insurance policy, designed to provide you with cover throughout your entire lifetime. The policy only pays out once the policyholder dies, providing the policyholder\u2019s dependants with a lump sum, usually tax-free. Depending on the individual policy, policyholders may have to continue contributing right up until they die, or they may be able to stop paying in once they reach a stated age, even though the cover continues until they die.<\/p>\n Clarify what you want the life insurance to protect<\/strong> The first consideration is to clarify what you want the life insurance to protect. If you simply want to cover your mortgage, then an amount equal to the outstanding mortgage debt can achieve that.<\/p>\n To prevent your family from being financially disadvantaged by your premature death, and to provide enough financial support to maintain their current lifestyle, there are a few more variables you should consider: <\/strong><\/p>\n What are your family expenses, and how would they change if you died? Providing a financial safety net for your loved ones Your wealth should work in all the ways you want it to. Whatever your goals are in life, careful planning and successful investing of your wealth can help you get there. Whatever stage of life you\u2019re at, we\u2019ll help navigate you through the opportunities and challenges… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/posts\/2662"}],"collection":[{"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/comments?post=2662"}],"version-history":[{"count":0,"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/posts\/2662\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/media?parent=2662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/categories?post=2662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pksassociates.co.uk\/news\/wp-json\/wp\/v2\/tags?post=2662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIf you die during your earning years, your family could suffer a severe economic loss as a result of losing your current and future income. Unfortunately, your family would still have to pay its regular bills, the mortgage and outstanding debts, and perhaps even continue saving for university and retirement.<\/p>\n
\nWe insure our cars, homes and even our mobile phones \u2013 so it goes without saying that we should also be insured for our full replacement value to ensure that our loved ones are financially catered for in the event of our premature death.<\/p>\n
\nLife insurance provides a safety net for your family and loved ones if you die, helping them cope financially during an otherwise difficult time. Ultimately, it offers reassurance that your family would be protected\u00a0financially should the worst happen.<\/p>\n
\nIt may be the case that not everyone needs life insurance. But if your spouse and children, partner, or other relatives depend on your income to cover the mortgage or other living expenses, then it will be something you should consider.<\/p>\n
\nThe appropriate level of life insurance will enable your dependants to cope financially in the event of your premature death. When you take out life insurance, you set the amount you want the policy to pay out should you die \u2013 this is called the \u2018sum assured\u2019. Even if you consider that currently you have sufficient life assurance, you\u2019ll probably need more later on if your circumstances change. If you don\u2019t update your policy as key events happen throughout your life, you may risk being seriously under-insured.<\/p>\n
\nWhat kind of financial support does your family have now?
\nWhat kind financial support will your family need in the future?
\nWhat kind of costs will need to be covered, such as household bills, living expenses, mortgage payments, education costs, debts or loans, or funeral costs?<\/p>\n
\nCovering loans
\nGetting married or entering into a registered civil partnership
\nStarting a family
\nBecoming a stay-at-home parent
\nHaving more children
\nMoving to a bigger property
\nSalary increases
\nChanging your job
\nReaching retirement
\nRelying on someone else to support you
\nPersonal guarantee for business loans<\/p>\n
\nThe price you pay for a life insurance policy depends on a number of things. These include the amount of money you want to cover and the length of the policy, but also your age, your health, your lifestyle and whether you smoke.<\/p>\n
\nThere are two basic types of life insurance: \u2018term life\u2019 and \u2018whole-of-life\u2019. But within those categories, there are different variations.
\nThe cheapest, simplest form of life insurance is term life insurance. It is straightforward protection \u2013 there is no investment element, and it pays out a lump sum if you die within a specified period. There are several types of term insurance.<\/p>\n
\nGenerally speaking, the amount of life insurance you may need should provide a lump sum that is sufficient to remove the burden of any debts and, ideally, leave enough over to invest in order to provide an income to support your dependants for the required period of time.<\/p>\n
\nHow much would the family expenditure increase on requirements such as childcare if you were to die?
\nHow much would your family income drop if you were to die?
\nHow much cover do you receive from your employer or company pension scheme, and for how long?
\nWhat existing policies do you have already, and how far do they go to meeting your needs?
\nHow long would your existing savings last?
\nWhat state benefits are there that could provide extra support to meet your family\u2019s needs?
\n\u03bdHow would the return of inflation to the economy affect the amount of your cover over time?\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"