Could your family cope financially if you were no longer around?
Would they be able to cover the mortgage payments, bills, general living expenses and funeral costs?
Life Insurance will give you peace of mind knowing that it will relieve the financial worries from your family.
It is a policy designed to pay out a one off tax free lump-sum to your loved ones in the event of your death.
There are several types of Life Insurance –
- Level Term Insurance
The policy is set for a fixed numbers of years and the sum assured in the event of your death will not change.
It is primarily designed to help protect immediate family members and possibly other dependents from financial hardship by providing the means to pay off the mortgage on the family home and/or by providing income to the surviving spouse to maintain their standard of living.
A joint policy covering two people pays out the total amount of cover at first death.
- Decreasing Term Insurance
This is designed to help protect a repayment mortgage, so the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
The amount you are covered for reduces each year, but the premium you pay remains fixed.
This type of policy is generally the cheapest form of life cover.
- Increasing Term Insurance
Increasing term life insurance is designed to combat inflation, increasing the sum insured throughout the policy.
The amount you are covered for increase each year, but the premium you pay may or may not remain the same.
- Family Income Benefit
Family Income Benefit (FIB) is a type of life insurance. Policies run for a set period of time known as the term. If you die within this period, the policy pays out a regular tax-free income until the end of the term. With traditional life insurance a lump sum is paid out on death.
Is it an easy and cheap way to provide your loved ones with an income rather than a lump sum if you die. It is an excellent product for young families as the income can be used to help support them as they grow, you might want the cover to run until your children have become independant.
If you need any Life Insurance advice then we are here to help you, please call 01224 516 888 or click here. We are based in the West End of Aberdeen and are happy to travel to your home or place of work. We can also set-up an appointment at our Queen’s Gardens office or meeting room in the city centre. Weekend appointments also available!