Life insurance is a way of financially protecting your family when you pass away. There are different types of life insurance policies in the UK, which can be discussed with a Moneysprite insurance advisor.
But before you start looking at the different policies and your options, what are the reasons you should be considering life insurance?
Financially protects your family
The overarching benefit of having a life insurance policy is to make your loved ones financially secure if you were to die unexpectedly. Consider how your family would pay all their monthly expenses without your income. Most families would struggle to pay their mortgage, bills and other expenses if one of the household incomes was to be taken away.
Without a life insurance policy, your family may have to sell their current home and downsize early.
It can cover funeral expenses
Many life insurance policies automatically cover your funeral expenses. The average cost of a funeral in the UK is over £4,500, so this can also save your loved ones a lot of money. Not all policies will cover the cost of funeral expenses, but you may be able to add it as an extra. Moneysprite can help you find life insurance policies with optional extras like these.
You can get paid for terminal illnesses
Some life insurance policies will accelerate your death benefit once you’re diagnosed with a terminal illness. For example, if you’re diagnosed with cancer and are given less than a year to live, the insurer will pay your full payment early.
This will allow you to see your money put to good use, such as paying off your family’s mortgage, or it could contribute to your own end of life care.
Death benefits are tax-free
Death benefits alone are not subject to taxation. Your family will receive all of the death benefit to help make them financially secure over the long term.
However, be aware that life insurance payouts can be considered part of the estate you leave behind, and a significant death benefit could put the value of your estate above the inheritance tax threshold (IHT). Some tax may then be taken from your estate.
To bring peace of mind
All of the above benefits provide the same thing – peace of mind. You can live your life knowing that if something unforeseen was to happen to you, your partner and children will be financially taken care of.
Most people choose life insurance for several reasons. But one reason is that you can’t put a price on the peace of mind you experience with life insurance.
Our life insurance brokering service
We’re ready to discuss the different life insurance policies and search for the one that would be most suitable for your needs. Contact Moneysprite now and receive a stellar personalised service.