Life insurance pays your dependents a monetary lump sum or a regular income on the event of your death. The policy is designed to bring reassurance that your family will be looked after if you are no longer there to provide as the main bread winner.
There are two main types of life insurance:
Term Life Insurance – Runs for a fixed period of time (known as the ‘term’ of your policy). For example, 10 or 25 years. These policies pay out if you die during the policy. The policy will lapse without value if no claim is made by the end of the term.
Whole-of-life policy – Pays out a lump sum no matter when you die, as long as the premiums are kept up to date.
Income Protection provides cover for your income if you are unable to work.
There are typically three types of cover;
Accident and Sickness only.
Accident, sickness and unemployment cover.
You can protect up to 70% of your gross salary, and is designed to replace your income tax-free.
Critical Illness Cover will payout in the event of you being diagnosed with one or more of a specific list of illnesses or conditions such as; cancer conditions, coronary artery bypass, heart attacks, kidney failure, major organ transplants, Multiple Sclerosis, and strokes.
- Pays out a tax-free lump sum.
- Protects you if diagnosed with a specified illness or medical condition.
- Combined with Life Insurance it can work out to be much cheaper.
If the worst does happen, it is important to make sure that you are financially protected against the impact of critical illness could have on you and your family.
If you have a repayment mortgage, this can be a very cost effective way on insuring against your mortgage debt in the event of your death.
As time passes and your outstanding mortgage reduces, the pay out on death also reduces leaving your dependents with the money to pay off the mortgage.
The family home is saved for your loved ones.
No worry of any missed mortgage payments.
Assurance that your home will not be repossessed.
Mortgage cover can ensure that your mortgage will be paid off if you die. It brings family security and eliminates the fear of missed repayments and repossession.
Pay off any debts and make sure your family receives an income in the event of your death, it’s worth considering.
Looks after your family’s living costs in the event of your death.
Pays out a regular tax-free income until the end of the term.
Cheap and easy way to provide your family with an income rather than a lump sum if you die.