As we get older, unwelcome intimations of mortality creep in. Nobody likes to think of life going on without them, or what their families would do if they were no longer around. But peace of mind can come from planning for an uncertain future. Putting plans for life insurance into action is one way in which you can ensure your family is protected if the unthinkable happens. And Lincolnshire financial advisors are the people to speak to if you want a balanced, unbiased view of the products out there.
Firstly, who doesn’t necessarily need life insurance? If you’re single with no dependants – which usually means children who are still at school – then Cambridge financial services such as life insurance might not be a worth it. If you’re in a relationship and your partner earns sufficient to support themselves and other dependants in the event of your death, and your mortgage is fully paid off, it’s unlikely that life insurance would be worth the outlay. But if those scenarios do not apply to you, it should have prompted you to think whether you have made sufficient provision for those you’d leave behind in the event of your sudden death. So, what exactly does life insurance cover? Well, that’s flexible, depending on the option you choose. If you sit down with your Lincolnshire financial advisors and run through the types on offer, what they cover and how much they cost, you will begin to get an idea of how your family could benefit. This gives you a starting point to determine the kind of product in which you should invest. There are two main types of policy. The first runs for a fixed term, which could be five, 10 or 25 years, for instance.
Considerations here might be the current ages of your children, the length of time left to pay off your mortgage and so on. Once this policy is ended, your premium payments cease and there is no pay-out in the event of your death; nor lump sum returnable to you for what you have put in. The second, as financial advisors will tell you, is known as a whole-of-life policy. This will pay out whenever you die, provided you have kept up your premium payments. And what will those payments be? Again, this is an area needing careful thought. It should not just be a decision based on what you can afford, but also what amount of money your family would need if you were to leave them without your ongoing income. Good financial advisers Lincolnshire wide will help you view this in the context of your wider finances. What other provisions do you already have in place, or could you set up? For instance, does your current job include death-in-service benefits? The final consideration you should make with the help of your financial advisor Lincolnshire based is whether a one-off lump sum or regular, ongoing payments would be most appropriate.
This is just a brief summary of life insurance. As with most financial decisions, you and your family’s requirements are unique: there’s no ‘one-size-fits-all. That’s why discussions with Lincolnshire financial advisors are so essential, rather than buying an off-the-shelf package. The right advice could save you money while still ensuring your family is protected in the event of your untimely death.