Family Life Insurance

Family life insurance quotes offer the possibility of obtaining a lump sum or a regular income in the event that a family member should die, and can offer a financial lifeline to grieving relatives. A policy could, for example, clear the mortgage or any other debts so your family would not have to worry about losing the roof over their heads. It could also cover day-to-day expenses or even a specific commitment, such as school fees.

family-whole-life-There are various different types of life insurance. Term insurance is the simplest and often the cheapest because it pays out only if you die within the defined term. For example, you might take out a 25-year plan so the policy would pay out if you were to die in the next 25 years. Your family would get nothing if you were to die after the end of the term.

Whole life insurance is different because it pays out whenever you die. It is usually linked to an investment such as a pension or an endowment policy and is often the most expensive type of cover because a claim is inevitable (which is why it’s called assurance; insurance is for something that might happen). The premiums could also go up if the investment performance is poor.

The amount of cover you need depends largely on your personal circumstances and your budget. If you have several young children, for example, you may need more cover than someone with one older child.  The size of your mortgage can also help to determine the size of the sum insured.

Check, too, whether you have any existing cover. For example, your employer might offer death-in-service benefit, which could pay a lump sum of around four times your annual salary if you were to die while still employed by the firm. You should include any potential death-in-service pay-out when determining how much insurance you need to buy.

Insurers take into account a number of risk factors when setting the premiums for life insurance. Older people are obviously more risky than younger people as they are more likely to die sooner. For the same reason, someone in poor health can expect to pay more for family life insurance. Dangerous occupations and pastimes can also push up premiums.

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