MORTGAGE INSURANCE


LIFE INSURANCE

There are various types of life insurance. However the principle for each variation is the same. In the event of your death your dependents will receive a sum of money in compensation ie as replacement for your earning power.

Why bother?

You only really want to consider paying for life insurance if you have children or others who are very reliant on you bringing home the bacon. If you're a singleton and someone suggests you need life insurance, then simply consider why you should bother? OK if you're the only earning child of parents whose pension arrangements won't keep them in comfort for ever, then go for it.

Otherwise you could always get insurance to pay for a huge wake - if you've got that sort of sense of humour

Unless you've got dependents or another good reason to have it, be wary. Life insurance is one of the few remaining ways for IFAs and brokers to make very big commisions.

Life insurance Tips

Life insurance gets more expensive the older you are. You probably want to buy level term assurance. This fixes how much you pay - and how much your beneficiaries will receive.

The benefit is that you wont be stung for a large premium when you're older. The downside is that the amount your beneficiaries receive will decrease with inflation. (If you shop around you should be able to find policies that will offer inflation proof payout schemes).