What is Life Insurance?
A life insurance plan helps protect your loved ones financially if the worst were to happen. Your family will get a cash lump sum they can use to cover costs such as funeral expenses, student debts, loans or a mortgage.
If you have a partner, children or any other dependents that rely on your income, then life insurance is for you. Most people will choose to take out life cover at key life moments including having a baby, getting married or nearing retirement. Many new graduates also take out cover, which is often cheaper when you are younger, to cover student debts from encumbering family, if the worst happens.
If you’re in the process of buying a home or buying into a vet practice, it’s also a good idea to think about life insurance to cover your mortgage or loan. This means that if you die before you’ve paid off your debt, then your family don’t need to worry about the monthly repayments.
There are several different Life Cover polices, which means its useful to speak with an advisor. You can either take out term life insurance which covers you for a fixed amount of time (like the length of your mortgage) or whole of life insurance that gives you lifelong cover with a guaranteed pay-out on death
Premiums for life cover polices vary dramatically depending on your health, whether you smoke and your age. In your early years of work this can provide a lot of value and even if you don’t have dependents but want to ensure that any debts you have are not an encumbrance on your family, then a life policy may be important to you.
Many Healthcare Cash Plans also provide a cash lump sum in the event of your accidental death
Why do I need Life Insurance?
Life insurance can give you peace of mind that your families way of life is protected, should the worst happen. Life insurance is an insurance policy that can minimise the financial impact that your death could have on your partner, family or dependents. It can be used to pay off any outstanding debts, such as a mortgage or business loan in the event of your early death.
- Cover, in the unfortunate event of your death or if you’ve been diagnosed with a terminal illness.
- The length of cover and the term are flexible, depending on your needs.
- Premiums can be fixed, unless you make any policy changes.
How it works
You choose the length and amount of cover you need.
You can take out a policy in single or joint names and premiums can be paid monthly or annually.
If you die or are diagnosed with a terminal illness with a life expectancy less than 12 months, during the term of the policy, it could pay out a cash sum.