Life Insurance. It's important, isn't it? However, we all have a number of bills we pay every month and sometimes we forget to account for life insurance. We may think we will get around to organising it next month, or we have that unexpected bill to pay so put it off again, but life insurance is a sound purchase to protect your family. Let's have a look at why. This is an ad.

What is life insurance?

Life insurance is an insurance policy that you pay into that gives you benefits when you die. The price of the policy is decided by how old you are, if you have any health conditions, your lifestyle for example if you smoke or drink excessively or do dangerous sports and how much cover you need. 

Types of life insurance 

There are different types of life insurance but they are divided into two main categories - term insurance and cash value.

With term insurance, If you die within the term, the policy pays out to your beneficiaries but if you don't you do not get any money back. With cash value, a portion of the premium you pay goes to cover the cost of insurance and a portion goes toward a savings account. 

Why buy life insurance?

People buy life insurance for security so that the can leave money to a love one, and pay off debts like helping to pay for funeral costs or that the mortgage is paid off on death.

In what circumstances would you buy life insurance?

If you have dependents then that's a major time to buy life insurance.  If you have a baby, or if you adopt this is a good time.  You want to know that they will be financially stable if you die, that your debts will be paid off and that they have money to go to college, buy a house or travel the world.  

If you have elderly relatives or you are a primary caregiver this is also a good reason to buy life insurance, so that on your death you know that there will be money to pay for the care of a dependent. 

If you are planning to get married or buying a house, you may want to start putting your finances in order. A policy can cover mortgage repayments, household bills, school fees, car loans and credit card debts on death.

If you have a job that has an element of risk if may be sensible to have life insurance too. Jobs such as being a firefighter, construction worker, and miner for example carry extra risks that you may want to insure for. 

If you have a hobby that is risky, you may want to consider life insurance. Hobbies like sky diving, scuba diving or rock climbing. You may pay more to insure yourself but the cost could be worth it depending on the risk involved. 

Conclusion

Life insurance is important. If you are considering life insurance get a free life insurance quote for peace of mind. 

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