What is life insurance and how does it work?

Establishing whether or not you need life insurance can seem very complicated, but it doesn’t need to be.

Generally speaking, if you have children, a partner or other relatives who depend on your income to cover mortgage payments, household bills, or any other living expenses, then you probably should consider life insurance as it could help provide for your family in the event of your death.

Whilst you might not want to think about what will happen when you die, spending a little time planning for the worst may mean that you and your loved ones have the peace of mind that, should the worst happen, they will be protected.

You can choose what level of insurance you have which will determine how long you’re protected for and how much money will be paid out, should you make a claim. Depending on your policy, it can either pay out in one lump sum or in regular monthly payments, as your wage would. So make sure you specify which you would prefer at the time you take out your policy.

The cost of the premiums will depend on several things, including the amount you want to be covered for and how long for, as well as your age, health, if you smoke, drink etc.

Choosing a policy

There is a wide range of life insurance policies you can choose from, but understanding all of the options available to you can be very confusing, so if you still need more information, one of our protection advisers will be able to help you.

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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