Life insurance pays out either a cash sum or regular payments on your death, this can help your loved ones deal with any financial impact that may follow when you are gone. You may consider getting life insurance if you have people that rely on you and your income.
Why do People Buy Life Insurance?
Buying property or starting a family is when most people begin to look into life insurance, when someone is dependent on you and your income. A life insurance plan will help give you some peace of mind and help your loved ones with any future costs that may occur should you die.
Here are a few reasons that many people choose to buy life insurance:
Buying Property: As discussed above, buying property is one of the main reasons people take out life insurance.
Marriage: Life insurance helps you to contribute financially to your loved ones’ life after you have gone.
Having a baby: Many parents take out a term life insurance just in case something should happen before your child is financially independent of you, this will help with any financial implications left when you die and could help with university fees etc.
Inheritance Tax: Buying a life insurance policy to cover the tax bill so that your children can enjoy all that you intended to give them. This is normally best discussed with a tax specialist.
So, what life insurance do I need?
There are a few different types of life insurance to consider. At Bill Somers we will use our extensive knowledge of life insurance policies to find the right cover to suit you and your lifestyle and help with all the paperwork that comes along with it, to help make your life that little bit easier. We will also look at your suitability for other protection products for example critical illness insurance and income protection.
Do You Need Life Insurance if you have a mortgage?
If you are single and don’t have anyone who depends on you financially you may not need life insurance; if you have a mortgage the lender would simply reclaim the property on your death and sell it to settle the remaining debt. However, if you plan to leave any mortgaged property to someone or a charity you would then need life insurance so that the mortgage could be settled prior to them receiving the property.
On the other hand, if you own a property that’s mortgaged that both you and your partner are named on, on your death the responsibility to repay the debt will continue with your surviving partner. They will be expected to pay the debt in its entirety even if your income currently comprises much of your household income.
Although discussing your passing is not a fun topic it is necessary to plan with your partner or loved ones what will happen with any assets or finances after you are gone, this is where we can help you get everything in order.
How To Get The Best Life Insurance?
Talk to our team at Bill Somers and with our extensive knowledge of life insurance, can ensure that your cover is right for your needs. We can take the stress out of comparing policies and companies by taking care of the paperwork and being the point of contact with the insurance company you choose.