Fixed Term Life Insurance
Stories of celebrities insuring their body parts arenít exactly uncommon. Insurers have had to estimate the value of everything from David Beckhamís legs to Dolly Partonís breasts, and celebrity duo Ant and Dec have even gone as far as to insure each otherís lives.
The ëIím a celebrity…í hosts, obviously not exactly confident in their own solo performances, have allegedly taken out cover that would pay each of them £2 million in the event of the otherís death.
Most couples might not regard themselves as creatively so reliant upon their partners, but when it comes to financial matters any serious accident could have a major impact.
Types Of Life Insurance Cover
The language surrounding life assurance can be a bit confusing, but level term life insurance simply offers what the name suggests. The ëtermí refers to a set period in which your insurer will pay out if you make a claim, and it is ëlevelí because the value they pay wonít change according to when the payment is made. An example would be for a fixed amount of £100,000 to be paid out if you were to die in the next 20 years. Typically people take out when theyíre taking out a mortgage or other major debt.
Level term assurance shouldnít be confused with decreasing term assurance where the value paid out decreases over time.
Is life insurance for me?
With all life assurance products you need to ask yourself what the financial impact of your death would be on those closest to you. If your death would have little financial impact then you may not need a policy, but if you have a family that would struggle to cope with mortgage payments and other costs then you should definitely consider taking one out.
life insurance Without Breaking The Bank
With many a Hollywood B-movie depicting the multi-millionaire bumped off for a life insurance payout itís easy to assume that taking out a policy is only for the very wealthy.
The cost of life insurance, however, depends entirely on the policy you choose, and you could even find cover for as little as £5 a month. Of course, you will need to consider your circumstances carefully ñ thereís little point in taking out a policy that costs little but wouldnít cover your commitments in the worst case scenario.
Counting The Cost Of life insurance
So what are the key factors when choosing a policy? First and foremost, the cost of the policy will depend on the amount it pays out. The amount you need will depend on your circumstances. It will need to cover any outstanding debts including your mortgage – unless you have a separate mortgage assurance policy – and ensure a good standard of living for your dependents.
Youíll also need to consider the length of the term ñ the longer it is the more costly the policy will be. A policy covering children should last until they at least finish full time education, and that covering a partner, until they at least reach pensionable age.
Finally, the amount you pay will depend on the likelihood of death ñ factors such as age, health, weather youíre a smoker and if you have a risky occupation will all have an impact. Whatever your situation itís vital that you disclose all relevant information. If you donít you could find your policy invalidated.
Compare life assurance polices.