You may want life insurance to provide some financial protection for the family
or to cover the payment of an Interest Only Mortgage.
There is no law that says you must have life insurance, but many people do consider
it a vital aspect of financial protection. It can provide some financial peace
of mind if the worst were to happen. Many people simply want it to help provide
a tax-free lump sum for their family or relatives if they were to die.
Another frequent use is to ensure the mortgage is covered if the mortgage holder
were to die. Taking out life insurance ensures that your mortgage will be completely
paid off if you die during the policy's term, and often it will be a condition
of the mortgage lender that you take out life insurance.
If you do not have dependants, Critical Illness Insurance might be a better
option. That way you benefit from the cover yourself if you suffer a serious
illness or you are permanently unable to work due to illness or injury.
If you do have a family, it's advisable to consider critical illness insurance
as well as life insurance, so that the mortgage will be paid off or a lump sum
provided if you become critically ill or unable to work.
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