It is important to have life insurance if you have a partner or family so that your family can cope without the income they will lose if you die. It is especially important if you have any financial commitments, like mortgages and loans, otherwise you family will become liable for these.
You can add a critical illness element to your life insurance. This means that the policy would pay a tax free cash lump sum, if you were to die, be diagnosed with a terminal illness, be a diagnosed with a critical illness or become totally permanently disabled. This is an important thing to consider, as becoming ill can restrict your ability to earn.
If you are looking purely to protect your mortgage in the event of a death or illness, a decreasing life insurance will ensure you are only paying for the cover you need. The sum assured goes down in line with how much you owe on your mortgage and you can add a critical illness element to the cover. Although this type of policy keeps the cost down it is always better to take out a level term life insurance if you can.
Most life insurance providers offer different benefits to their policies and it’s important to know what each one can do for you.
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This allows you to change part or all of your life insurance into another life assurance plan without providing further medical evidence.
This option lets you take out a new plan when this plan ends without providing further medical evidence.
This means that the provider will cover your premiums if you are incapacitated and unable to work for a certain amount of time.
This allows you to increase the level of cover up to certain limits without further medical evidence.
This means that your premiums and level of cover will up go up in line with the Retail Price Index to combat the effects of inflation.
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