Why Getting Life Insurance Today Could Save Your Family Thousands Later

It’s going to happen to us all, but many of us wonder why we need something that will only pay out after we’ve gone. Well first of all, if you die while still working, or even when retired, it can leave your family in difficult circumstances. There’s the consideration of unexpected illness, which could leave you unable to work and pay bills or a mortgage. Also, some types of mortgages require you to have life cover anyway.

Term and whole life insurance

The two main types of life insurance are term assurance or whole life assurance. They are all based on monthly premiums. The first covers you up to a particular age - if you die before then, the full payment is made to those you have nominated. If you survive beyond that age you get nothing. The second covers you for your whole life, so that it will pay out whenever you die. This is more expensive as the insurers know they will have to pay out at some stage regardless.

Other types

There are also some other types of cover. The newer universal life coverage has the potential for greater growth of cash values. Endowments pay an additional lump sum when they mature, and are therefore more expensive. You can also get specific cover for example for accidental death, which is cheaper as it is limited to a less likely event.

Exclusions

Life insurance policies will exclude any cause of death by your own hand, or by any medical cause which was not fully disclosed to the insurers at the time the policy was taken out.

When to get it

The younger you get life insurance the cheaper it is likely to be. It is also better to take it out before any serious medical issues arise, as death by existing medical causes will often be excluded or the premiums will be higher.