Finance Lead Desk

Right Life Insurance for you and your family

Choosing the Right Life Insurance

Have you ever thought what would happen to your family when you depart on your heavenly journey? If you’re the sole earner of your family, they are unlikely to live a good life once your savings are over. Money is such an important thing that one can’t live without it. You need money to buy food, pay for your child’s schooling, pay house-related expenses like property taxes, water bills, energy bills, fuel for your car and to buy your loved ones presents for Christmas. You can guarantee your family of all this happiness by investing in a life insurance for yourself.

 

What Is All This Talk about Life Insurance?

Everybody is talking about life insurance because it is the most valuable thing you would have done for your family after you die. It is basically a promise by an insurance company to support your family financially when you’re no more. It is also known as life cover or death cover. If you are diagnosed with a critical illness such as cancer, diabetes, etc. or in the event of your death, the insurer pays a sum of money to your survivors. You can include a critical illness cover as part of your life cover. You can also take it as a separate policy. The idea is that you’re paying either a monthly premium or a lump sum to the insurer, in return for which your dear ones won’t face financial adversity.

life insurance

How Do I Choose the Right Life Cover?

Life insurance comes in all shapes and sizes. There are tons of policies available that you can take against your life from Aviva insurance UK or some other insurance company. Some give you lump sum payments, while others give you a part of the amount every month. This is a better option as it takes care of the bills that you must pay each month. You can choose the right one for you from the following types of policies:

Term insurance

Term insurance is for a specified period of time. This may be 5, 10 or even 20 years. If you die during the number of years you’ve chosen, your family will receive a lump sum. The factors that affect term insurance premiums are your age, health, term of policy, level of cover, and whether you smoke. It can be only on your life or on joint lives of you and your partner.

Group life cover

Group life cover, also death in service, is a benefit that you, as a part of the workforce, get from your employer. It is also called death in service benefit. You get protection for the time you’re working for their organization. It runs until your normal retirement age. If you die, your next of kin gets an amount equal to a multiple of your salary, i.e. it may be two, three or four times your salary. This amount may or may not be tax-free.

Critical illness insurance

What do you do if you are suddenly diagnosed with a certain medical illness? You might not have accounted for it due to the absence of a family history of that illness. This essential cover can help you with mortgage payments, treatment costs and household bills. If you’re wondering which health issues come under this head, they are cancer, heart attack and stroke, provided they are of a certain severity.

Over 50 insurance

This type of insurance is available only to those who are above the age of 50 years. Over 50 life cover guarantees a lump sum payment that is tax-free upon your death. You should go for as it can pay for funeral costs or to leave a legacy to your loved one. You pay a fixed premium upto a decided age.

Whole of life insurance

This plan gives you cover for your entire life. The debts that you’ve left unpaid can be paid back with this lump sum. You can also leave it to someone like your partner,  child, brother or sister or near relative. This insurance works in a way that the insurer invests the premium you pay. This keeps adding up value against which you may be able to withdraw or borrow. Whole of life insurance also offers a withdrawal clause by which you can cancel your plan and withdraw all of the money.

 

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