The Importance Of Life Insurance

Most people will have protection cover in place to protect a loan or mortgage. But the mortgage isn’t usually the only payment we need to make each month. What about covering everyday
bills and expenses? Utility bills, food shopping, travel costs, childcare… the list could go on.
It is not a pleasant thought, but…

• How would one partner cope financially with the death or critical illness of the other?
• Could you cope maintaining your current lifestyle?
• Could you continue to raise your family?

Protection products can help provide financial peace of mind when it’s needed most. They are designed to provide you with a cash sum or monthly benefit. They are payable, for example if you die or are diagnosed with a terminal or specified critical illness during the policy term and are eligible to claim. Depending on the products chosen, they could help you to:

• Maintain your standard of living
• Pay your monthly bills and meet your daily living costs
• Pay off your debts
• Afford to stay in your family home rather than have to downsize

How much will it cost me?Premiums are based on:

• Your age
• Gender
• Other factors such as health and whether you smoke.

Usually, the younger you are the less you’ll pay.As an example:
A female non-smoker aged 40 years next birthday can have £150,000 worth of cover over a period of 18 years, for a monthly premium of £12.10. (Level Term Assurance Plan with waiver of premium benefit. Quote date 22/06/2009.) Your actual premium will depend on your individual

Who shall I cover?

It’s also important to remember that it’s not just the main wage earner that you may need to consider when working out the right cover. What about the work a full time houseperson does – how would you replace them if they fell ill?.

What you can do to get covered

By considering your existing finances and reviewing your requirements now with your adviser you could help protect yourself and your partner’s/family’s future. As with all protection policies limitations will apply.
Your adviser can:
• Help to fully identify your protection needs and recommend how to address
them.
• Answer any questions and concerns you may have.
• Review your requirements on a regular basis in line with your changing commitment and lifestyle.
For more details and to arrange cover please speak to your independent financial adviser.
It really is worthwhile thinking about the extra protection for your partner/family over and
above your mortgage.