Do I need life insurance?
If you’re worried about leaving a financial burden to your loved ones, life insurance can offer you peace of mind.It can be a financial safety net that pays towards a mortgage, living costs or other debts, after you’re gone.
How does life insurance work?
If you keep up with your premiums, life insurance pays out when the policyholder dies, usually as a tax-free lump sum.However, there are several levels of life insurance cover, and they all work in slightly different ways…
What level of cover do I need?
There are lots of types of life insurance, so it depends what you need…
A whole of life policy covers you for the rest of your life and guarantees a payout.
A decreasing-term policy is usually cheaper, but the payout decreases over time. These are usually used to cover a mortgage.
A level-term policy guarantees your loved ones a fixed payout amount.
The level of cover is up to you. You set the payout amount, but make sure you can afford the premiums.
When should I get life insurance?
A good time to get life insurance is after a major life event.For example, when you buy your first home, get married or have a child.This is so your loved ones could repay the mortgage debt and help secure your family’s future if something happened to you.
Do you need life insurance for a mortgage?
Mortgage lenders may insist you take out life insurance, before offering you a mortgage. This is to reassure them that the mortgage will still be paid if you died.
How do I take out life insurance?
With Comparethemarket, you can compare life insurance quotes in minutes.Just pop in a few details and choose the best policy for you.
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