When we have a family it becomes even more important, as we have dependents, to ensure they looked after should the unexpected happen to us. Family life assurance is one way of providing some form of financial support at such a time. Family life cover is provided by a wide range of insurance companies and is one of the cheapest forms of protection available. It is there to provide a set benefit amount should anything happen to the life assured during the lifetime of the plan. The sum assured (benefit amount) and term (lifetime of plan) is set out to your specifications. Therefore, family life assurance is unique to your requirements. Additionally, you can have the family life cover on a level or decreasing basis. Decreasing/mortgage family life assurance is where the initial sum assured reduces, by a given percentage, over the number of years the plan is taken out for. Conversely, the term/level family life assurance is as it says and the sum assured stays the same throughout the lifetime of the policy. The type of family life cover you take out will depend on what your aim is, for example what you would like to achieve with the money. The cost of family life cover increases with the sum assured and number of years. Therefore, the greater the benefit amount required and/or the longer the term the more expensive the monthly premiums for that insurance will be. Also, if the cover is on a level basis as opposed to decreasing the greater the monthly payments will be. Another important consideration when taking out your family life assurance is if you are going to cover just yourself or your partner as well. Should you both want life insurance advice and want to cover your partner as well this is can be done on what is know as a joint first life insurance. Joint first life insurance provides the same, a set benefit amount payable during the lifetime of the plan. However, with first life insurance it is only payable once, for example, payable on first death then it will cease to exist and the surviving partner will no longer have any life cover.
Definition Life Assurance - Definition Life Cover - First Life Assurance
When you decide to start a family, you may not think of family life assurance immediately. However, it is an important consideration that should not be put off for long. No one can predict the future, and death or catastrophic illness can strike at any time. In the best interests of your children, spouse, or dependants, it is an excellent idea to plan as much for the future as you can. You will not be able to cover every contingency, but with the right choice of family life cover, you can make sure financial worries are not part of the equation.
As one of the cheapest forms of protection available against death and illness, family life cover can give you and your family peace of mind and assurance that if anything happens, financial worries will be taken care of and relieve that burden during one of the most difficult times a family can face.
Family life insurance is a contract whereby an insurer to whom you pay a premium will pay a lump sum or benefit to a surviving beneficiary in the event of death or debilitating or terminal illness. Depending on the policy chosen, you can tailor it to meet the unique needs of your family to cover a mortgage on a home or other short or long standing loans as well as providing funds for burial expenses.
It is a difficult subject to discuss, but it’s a necessary part of providing for your family the best you can. It’s never too late to make proper arrangements, and over 50 life insurance is available if you haven’t thought about protection for your family up to this point. Below are some options in addition to the basic family life assurance policies available that may help you make the right decision.
Critical illness: Upon the diagnosis of a qualifying critical illness, a lump sum is paid. This can be combined with the decreasing term life cover, although should death follow the diagnosis, only a single payout will be made.
Terminal illness: Upon a qualifying diagnosis of a terminal illness, the lump sum is paid immediately, providing you with the opportunity and time to make the proper arrangements and see to your dependants.
Waiver of premium: If you are unable to work after a diagnosis, once a predetermined amount of time has passed your premiums are paid on your behalf. Each policy is different, so make sure to read the policy carefully.
Guarantee of premium: This means for the life of your policy the premium never goes up. Typically, decreasing term life cover is renewable every five years, at which time the price for the premium can be increased following review.
Trust: This option insures your beneficiaries receive the lump sum without delay and may avoid the inheritance tax.
Credit life cover: This option is designed to provide coverage for outstanding debt that not only includes your mortgage, but also an automobile or other short-term or long-term loans. This is a good option to protect any large ticket items that would be a huge drain on your dependants should you pass without the loan being paid. Credit life assurance can remove an enormous burden of worry from your family.
In addition, the policy you choose can cover a single life or you may choose first life insurance. This means the payout of benefits occurs when the first of the two people covered suffers death or terminal illness. This particular policy is appropriate for young parents of children, and takes the burden of worry away from the surviving spouse meeting financial obligations in the midst of one of the most devastating experiences a family can withstand.
First life insurance is a good choice in this particular circumstance, as it assures the surviving spouse and dependants they won’t lose the home or automobile in addition to losing one of the most important people in their lives. By planning ahead, parents can provide for their children should the worst happen.
It is a good idea to compare first life assurance life insurance quotes in order to receive the best value for your money. Taking the time to do this can save you a lot of money; the competition is intense and this is good news for the consumer. Your choice of family life cover for your loved ones is one of the most important decisions you can make, so make sure to read through all the policy requirements carefully before choosing and purchasing your first life insurance.
The insurance company providing the coverage will ask you some basic questions, such as age, gender, and whether you are a smoker or not. The answers to these questions as well as the length of time of the policy will determine your premium amount.
Answer all questions honestly, otherwise the payout may be compromised and your family may be unable to collect the benefit. Whether your policy includes income protection, critical illness coverage, mortgage or loan payoff, or health insurance, every policy and company are different so make sure you become familiar with their terms and conditions before purchasing a policy. Don’t be afraid to ask questions should you not understand terminology or condition.
Discussing the subjects of death and illness is never an easy one, especially with people close to you. However, it is necessary in order to make the best provision for your dependants and loved ones in the worst case scenario. When a crisis hits, the last thing you or your family needs or wants to worry about is how the bills are going to be paid, how to replace lost income, or how they are going to keep the family home or automobile. None of us can predict the future, but death is a constant for us all, and the time to make arrangements through comprehensive family life assurance is before the crisis hits to make things as easy as possible for the surviving members of the family. Once the policy is in place, everyone can rest easier knowing that when and if the worst should happen, there is at least peace of mind when it comes to financial concerns.
Choosing the proper policy to cover your family in case of disaster is easy and inexpensive, but it may be one of the most important investments you make.
