Few people like to think about what will happen in the event of their death, but planning ahead could save a lot of stress for your loved ones at a time of considerable distress.
As with wills, many people put off taking out life assurance policies in the belief that it is not something they need to think about just yet. However, doing so sooner rather than later can provide peace of mind and leave you and your dependants safe in the knowledge that costs such as mortgage repayments will still be met after your death.
However, as with any insurance policy, it is important to make sure you find one that it right for your individual circumstances.
Life assurance policies have come a long way in a relatively short period of time. Today, they provide a number of different functions.
Perhaps the best known type of policy is level term life insurance, which is designed for anyone with family or loved ones who are financially dependent on them. These policies pay out a capital lump sum in the event of the death of the policyholder.
There are a number of different types of term assurance. For example, “level term life insurance” offers an assured sum that remains constant throughout the life of the policy.
By contrast, “decreasing term assurance” offers cover in which the sum assured decreases with time, typically in line with repayment of a mortgage. Such policies are designed to pay out just enough to repay outstanding mortgage balances.
The cost of life assurance has fallen significantly in recent years and most clients will benefit from a review of their existing policies.
At Milsted Langdon Financial Services, our independent financial advisers use their experience in this area to ensure your policy is the best product available to you.