Life Cover

Do I need Life Insurance?

Life insurance is a vital part of ensuring that those you care about will be financially secure in the event of your death. Essentially, this is an insurance policy which pays out either a fixed lump sum or a series of regular payments to your family &/or dependents after you die.

The amount of money payable on your death depends on the level of cover you choose – usually the larger the sum the larger the monthly payments.

For home owners, life insurance is strongly advised by your mortgage lender – to ensure that in the event of your death before the mortgage is repaid the life insurance will make up the shortfall. This also offers additional security to your nearest and dearest in that your/their home will be left to them, mortgage free. Additional life insurance can also be purchased to provide your family with a lump sum or regular income too.

A term life insurance plan is the most basic form of life cover and is usually the cheapest way to insure your life. It covers you for a fixed period and pays out a one off lump sum (or a series of regular payments depending on how the policy is set up) if you die during the policy term.

With some term insurance policies you can add additional options, for instance critical illness cover. If you do add on critical illness cover, the plan will pay out on the first event of either diagnosis of a qualifying critical illness or if you die during the term of the policy.

Who is it for?

This type of plan is designed for those who want to leave a lump sum in the event of their death within a specified time period whilst keeping the cost to a minimum. Term assurance can protect your family from the financial implications of a personal tragedy and is particularly important if you have young children or dependents. It can be used to cover a mortgage, other loan or to ensure that your family is provided with a regular income, should the worst happen.

As impartial Financial Advisors, Hallam Mortgages can talk you through the many ways in which your life cover can be set up, to ensure that you not only have the best plan, but also one that suits your individual circumstances.