Protecting Your Loved Ones


It’s a subject that no-one likes to think about let alone discuss but what provision do you have in place for your family in the event of your death?

A life insurance policy is an insurance contract. In exchange for regular premiums, the contract offers to pay an agreed lump sum of money on joint life policies if one of the lives covered dies during the term of the policy.

Generally, the younger and healthier you are the cheaper this type of insurance is and when your family is young this insurance can give you the “biggest bang for your buck”.

You may already have a plan that covers the outstanding mortgage on your home but what about not only the day to day costs but the future costs your family might encounter – university, weddings and help getting children on the property ladder.

Some of the things that you might like to consider are “how much cover do I think you need” and “how long do you need the cover for”? As with any other financial decision you make, the product has to fit your needs.

What is Term Life Insurance and what does it mean?

• You have to die for it to be paid out
• It only covers a set period of time at the end of which it expires

If the person or persons insured live longer than the term of the insurance policy then no cash value is payable under a term life insurance plan. Level term life insurance provides cover of a set amount of cover for a set period of time.

There are different types of life insurance, level (premium and cover remain the same), increasing (premium and cover increase in line with the contract) and decreasing (cover decrease and premium generally remains the same).

The type, amount and term of cover required is always going to depend on an individual’s circumstances. Essentially, you need to work out the financial impact to your family in the event of your death, and how much money they would need to survive.

You can add critical illness cover for an extra cost when you take out your policy. It could pay out a cash lump sum if you are diagnosed with one of the specified critical illnesses that your plan covers during the length of the policy, such as heart attack, cancer or stroke. You can also add Terminal Illness cover, again for an additional cost, which pays out a cash sum if you are diagnosed with a terminal illness from which you are expected to die within 12 months of the diagnosis.

If you would like to make an appointment to speak with one of our advisers regarding life assurance, retirement, critical illness, income protection or any other aspect of your finances then please give me a call 0345 034 3424 or email me at I will be happy to arrange this. The first consultation is completely free of charge and no obligation.

This article is intended to provide a general review and opinion of certain topics and its purpose is to inform but not to recommend or support any specific investment or course of action.