In its most popular form, the insurance pays out a single lump sum payment to your designated beneficiaries if you should die within a predetermined period of time – hence its popular title, term life cover.
About Life Insurance:
Life insurance is principally about giving your dependents and loved ones an element of financial security in the event of your untimely death – if that should occur, this life cover ensures the payment of an assured, lump sum payment to your survivors.
You probably don’t need to be any type of life insurance expert, therefore, to see that this kind of insurance could prove a vital lifeline for your dependents at a particularly difficult time in their lives.
The lump sum benefit can, of course, be used in any way the beneficiaries choose. Depending on the amount of cover you decide to buy, the insurance payout might be sufficient to settle the balance of any mortgage – or significantly reduce that balance – thus helping to ensure that your loved ones continue to have their home to live in. Alternatively, the sum might be invested so as to provide a regular income from which to support the lifestyle to which your family was accustomed when you were the principal breadwinner.
Any life insurance expert is likely to tell you that life cover is considered by some people to be an affordable type of insurance that it is possible to buy. The monthly premiums can be tailored to suit your particular circumstances and needs, whilst the amount you choose will, of course, determine the agreed benefit to be paid in the event of your untimely death. More benefits discussed here.
For what you might consider a relatively fair monthly premium, therefore, life insurance could prove to be a veritable lifeline for your family’s future financial security if the worst comes to the worst.