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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Allie has spent her career helping people quickly understand complicated topics, to help them save money and focus on what matters. With almost 10 years’ experience writing, leading and managing content, she is an expert in personal finance and insurance products.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Tim Knighton is an expert in building and managing relationships with big brands for the benefit of customers, with more than 20 years of experience. He seeks out the right products that look after you and those you love most during the toughest times.
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