A Guide to Life Assurance for the Uncertain

If there are people who depend on you financially, you'll probably need to consider life cover. Life cover is an insurance plan that will pay a cash sum in the event of your death during the cover term (the length of time you choose the cover to run for). It also pays a cash sum on the diagnosis of a terminal illness where there is a life expectancy of less than twelve months. Your insurance provider may have limits on how close to the end of the cover term this diagnosis can be.

In the unfortunate event of your death, your family will receive a lump sum according to the terms and conditions of your policy. Depending on the level of cover you arrange, this cash sum could be used to pay outstanding debts, such as a mortgage or credit cards. The cash sum could also provide financial security for your family and dependents into the future.

As you look into life cover, you will soon find out that most insurance providers offer two kinds of life insurance: level cover and decreasing cover. Level cover would pay out a cash sum that stays the same throughout the cover term. Decreasing cover is a cash sum paid out that decreases over the term, this type of cover is often used as protection for a mortgage and so usually decreases in line with the outstanding amount of your loan.

You can also choose between single life, which covers just one person, and joint life, which covers against something happening to either you or to the other owner; who could be your spouse, civil partner or another person you've chosen joint cover with. The amount of premium you pay will usually depend on certain factors, including: the amount of cover you need; how long you need it for; your gender; whether you smoke; and your medical history, occupation and pastimes.

Do remember, however, that inflation reduces the spending power of any money paid out in the future. You should therefore regularly review your cover.

Just as you wouldn't think twice about insuring your home, car or valuable possessions - it is equally important to ensure that you have sufficient life cover. Your family are perhaps the most precious possession of all.

Author Resource Box

Greenbee offers a range of insurance services selected by the John Lewis Partnership. These include: home, event, and wedding insurance as well as car, travel, pet, wedding, event, life and buildings and contents insurance products. For moee information please visit http://www.greenbee.com for further information. Greenbee PR Josie Anderson greenbeepr@googlemail.com 171 Victoria Street London SW1E 5NN United Kingdom 0207 592 6677

Authors

Publishers

Company Info

Marketing Tools

A Guide to Life Assurance for the Uncertain