Protecting dependants with life insurance

Protecting your dependants with life assurance Life assurance pays out a cash sum if you die during the period your plan covers. This period could be the whole of your life (which is commonly called a ‘whole of life plan’) or a certain number of years (which is
commonly called a ‘term plan’).How much your plan pays out is up to you. You can,
within reason, choose any level of cover you want.The key to deciding on the right level of life cover is to be clear about the amount of money you are likely to need to cover your existing and future commitments.
For example, you might want to leave enough money to pay off your mortgage, cover school and university fees for your children, or provide your spouse (the term spouse can apply to husband, wife or civil partner) or partner with a cash sum to live off or invest after your death.

If you have dependants you would like to provide for
when you die, you should consider life assurance.

Things to consider :
As well as more obvious things like your mortgage,your children’s school fees, or simply the many other costs associated with having children, you may have other existing or potential financial commitments you would be wise to protect. Don’t forget to include any other debts or borrowing you are responsible for, like home improvement loans, car loans or credit card bills.
You may also have a business relationship – such as a partnership – that needs protecting, or you may be covering the care costs of an ageing parent.
Depending on the plan you choose, you may also be able to review your plan as your needs or
circumstances change, adding cover as appropriate.