Why do I Need Life Assurance?
To know that you have arranged a full life-assurance policy comes as a relief both for you and your loved ones.
The main purpose of life insurance is to provide your dependants or some other beneficiaries with a guaranteed source of income. Life insurance policies pay your family either a lump sum payment or separate smaller sums if you die or come down with a serious disease.
Why do I Choose Life-Insurance1?
Life-Insurance1 is an independent and impartial life-assurance website, designed to assist its users in finding the best possible life cover estimate for their particular set of conditions. Our brokers browse through hundreds of life-assurance providers in order to secure the best deals available. Our service is free of charge and very user-friendly, and you are under no obligation to accept the quotations we provide.
How Much Life Assurance do I Need?
The cost of life assurance policies depends on two key factors: 1. How much cover you need; 2. How long you need it for.
Subsequently, your age, sex, occupation, drinking and smoking habits, etc. are to be taken into consideration.
The central issue which determines premiums is your medical history and current health status.
How Much Life Cover do I need?
As a general rule, a primary or sole breadwinner perseveres in supporting their family's comfortable lifestyle. In some cases you will also have to provide the resources for professionals to take over in case you are away.
A partner's loss, on the other hand, normally leads to a decline of approximately 30% in household expenses. You should aim at cover of about five to ten times your annual salary.
How long do I Need Life Assurance for?
One option is until your dependants are old enough to take care of themselves, i.e. approximately 25 years of age for most people. Alternatively - until your savings are enough to sustain you and your partner.
How Much Mortgage Cover do I Need and for How Long?
You are supposed to cover the amount of the outstanding debt, until the debt has been settled.
What Type of Mortgage Cover do I Need?
If your mortgage is a repayment one, you need a Decreasing Term Assurance policy. If it is an interest-only mortgage, then you need a Level Term policy.