Life insurance (also known as life assurance or term assurance) is a great way to help protect your family from the financial worries they could face if you were no longer around, such as household bills, child-care costs, university fees and covering mortgage payments.
So what is life insurance? In a nutshell, life insurance is a contract between you and an insurer. It could pay out a cash sum if you die during the length of the policy.
What types of life insurance are available?
There are different types available to suit different needs:
- Level Term Assurance to help protect your family financially
- Mortgage Term Assurance specifically designed to help pay off the mortgage
- Family Income Benefit to help protect your family financially by paying a monthly benefit
There is also an option to add Critical Illness Cover for an extra cost when you take out life insurance. It’s designed to pay out if you’re diagnosed with one of the specified critical illnesses during the length of the policy.
You decide what type of life insurance best suits your needs, how much you want and how long you need it for. For example, if you want your loved ones to be able to pay off the mortgage, think about the size of your mortgage and the number of years left to pay.
Please remember that life insurance is not a savings or investment plan and has no cash value unless a valid claim is made.