Life Insurance – Overview
Life Insurance is a general term applied to the various types of family protection policies available in the market today. At Lifetime Financial Planning we believe that some kind of back-up financial security should be an integral part of your financial plan, helping to protect your family income against the unforeseen events that life sometimes throws at us.
Life Insurance is designed to ensure that, in the event that a policy holder passes away:
• the main family income can continue
ensuring for example that your children can continue to have the opportunity to go to college in your absence.
• your family can maintain their standard of living
which you worked so hard to provide for them and they can continue to meet the usual household bills into the future.
• mortgage loans and other debts can be paid off
securing the family home or business in the absence of the main breadwinner(s).
Different Types of Life Insurance Explained
Without expert and informed advice it can be difficult to determine which type of policy is right for you. We can help to guide in the right direction to ensure you receive the correct level of cover for yourself and your family.
There are three main types of Life Insurance policies :
TERM LIFE INSURANCE
Protects your family’s main income for a period of time which is specified by you, usually until all dependents are grown up and financially self sufficient – more details
CONVERTIBLE TERM LIFE INSURANCE
Can be a good option if you are not sure how long you want the protection policy to last, as it can be converted to a new policy before the plan reaches its end date – more details
WHOLE OF LIFE INSURANCE
Unlike Term/Convertible Term Life Insurance this type of policy has no specific end date. It continues throughout the life of the policy holder and only ends when they eventually pass away.
It is often used by asset rich individuals to leave a cash gift for loved ones to help meet the burden of inheritance taxes – more details
You May Not Need Life Insurance
People who probably don’t need Life Insurance include:
• Those who own sufficient income-generating assets to comfortably provide for their loved ones in the event of something unforeseen.
• Those who have no dependents or whose family is grown up and financially self sufficient.
• Those who have built up sufficient death in service benefits through their existing pension or employment.
• Those whose partner’s earnings are enough to comfortably cover the family living expenses and provide for all the opportunities your children should have in your absence.
We will help you in the early stages of the Lifetime Financial Planning process to determine whether or not a Life Insurance policy may be right for you.
We provide expert impartial advice on the differences between the types of cover, and are obliged by law to always act in your best interest when researching potential plans that may suit your needs.
We will research the market among the broad range of providers that we deal with to ensure you get the right cover for your requirements.
If you have already chosen a policy yourself and would like to conduct a review please don’t hesitate to contact us.