Benefits of life insurance

Life insurance is extremely beneficial for securing the financial future of your loved ones.

Here’s a quick overview of the main benefits of having a life insurance policy:

The main benefit is that a life insurance pay out can ensure that your loved ones have the funds to help continue living their current lifestyle, without worrying financially, after your passing.

Amongst other things, a pay out can help your loved ones to pay off the remaining mortgage balance - allowing them to remain in the family home.

Upon your passing, any outstanding debts will fall to your estate. A life insurance pay out can help to ensure there’s enough money to settle these debts, as well as provide for your loved ones.

You’ll also benefit from additional layers of cover, such as terminal illness cover. Which will allow you to make an early claim on your policy if you’re diagnosed with a life-threatening illness and predicted to pass away within 12 months.

Overall, it helps to give you peace of mind that your loved ones will be taken care of financially when you’re no longer around.

The main benefit of whole of life cover is that your loved ones are guaranteed a pay out when you pass away (not if you pass away).

Whereas the main benefit of term life insurance is its affordability.

Which one is best for you will depend on your needs and budget.

If you’re looking to help protect large debts, such as a mortgage, you may choose term life insurance.

If you want to guarantee your loved ones an inheritance, you may choose whole of life insurance.

Talking to a life insurance broker, such as Reassured, will allow you to gather all the information you need about both options so you can make an informed decision.

We can also compare policies on your behalf to ensure you’re getting the best price we can offer on a policy that meets all of your needs.

Group life insurance is often provided to employees by their employer and is more commonly known as death in service benefit.

If you pass away while in service with your employer, they’ll pay a lump sum to your loved ones.

This pay out will typically be a multiple of your salary.

This can be an extremely beneficial work perk as it can provide a level of financial protection to your loved ones if the worst were to happen.

However, not all employers will offer this benefit and even if they do, it can't be taken with you if you decide to leave your job.

It’s also likely that the amount paid out will not be enough to help cover all the financial obligations that will be left to your loved ones (such as paying off a mortgage and paying for your funeral).

This highlights the importance of having your own personal life insurance in place.

Please note, at the time of writing this article Reassured do not sell group life insurance policies.

Critical illness can be added to a term life insurance policy for an additional cost.

If you’re diagnosed with a life-changing illness (listed within your policy) you’ll be able to make an early claim on your life insurance policy.

This can be extremely beneficial if you’re left unable to work as the pay out you receive can help to replace any lost income.

You’ll pay extra in your monthly premium to benefit from this additional benefit.

Whether you need life insurance will be a personal decision, depending on your needs and circumstances.