What is life insurance and why should I get it?


What is life insurance and why should I get it?

If you’ve seen adverts about life insurance on TV or have started to think about getting life insurance yourself but don’t know where to start here’s a handy overview to help you out.

Life insurance, sometimes also called life cover, is a type of insurance policy you can obtain to ensure that, when you pass away, your loved ones - particularly those that are dependent on you, are financially protected. It can support your dependents with any financial commitments you may have at the time of your passing such as a mortgage, childcare costs or funeral expenses.

Most life insurance policies are designed to pay out a cash sum to your loved ones if you pass away while covered by the policy. There are 2 main types of life insurance on offer – term life insurance and whole of life insurance. Term life insurance would be suited to you if you wanted to apply for insurance for a maximum term and a cash sum would be paid if you pass away during that period cover. Whole of life insurance differs in that the cover would last for all your life so the cash sum would be paid out whenever you pass out, instead of during a specific cover period – like term life insurance.

Whilst life insurance is not a necessity, starting a life insurance policy would give both you and your dependants some comfort, especially if you are diagnosed with a terminal illness or something unexpected arises. Most life insurance policies offer a form of critical illness cover too which means that you would receive your lump sum of cash if you’re diagnosed with any illness from a long list of illnesses included. Even if you don’t have young children or people that directly depend on you, life insurance would still be a good idea! Our handy comparison website can help you find the best life insurance policy for you based on any requirements you have. Once we’ve found the best deal for you, you’ll be able to chose the amount of cover, how long you want it for and whether you want it under a joint or single name with the life insurance provider.