Why You Should Buy a Life Insurance Policy

term life insuranceHouses, cars, private jets, jewels, yachts: if you were to choose whether to save your life or one of these assets, what would your decision be? Probably your life.

Everything else becomes suddenly insignificant when we realize that life is short and that we are not immortal. The bottom line is, no one knows when his or her life will come to an end. Sometimes, life ends abruptly for some and their demise is hugely felt by those very close to him or her.

Nowadays, technology allows us to tell how long we have left, so that, should we get sick, we can make arrangements in order for out loved ones to keep living comfortably when we are no longer with them.

If one knew when he would die, people, especially parents, would plan for everything to go smoothly once he is gone.

We all like to think that all will be well with our loved ones once the worst happens to us. It’s not only death that can end our life, but also a terminal disease that leaves one incapacitated and at the mercies of his beloved ones.

One can be involved in a crippling accident that transforms him from the provider to the one who needs to be provided for. These are inevitable events in our lives.

Having a plan once we ever get in such a situation just elaborates how much we care for our loved ones.

That’s why everyone should get a life insurance policy, especially if one or more persons rely on them.  A life insurance policy guarantees that the policyholder’s dependents will get paid a lump sum if the policyholder dies within the chosen policy term.

The lump sum covers funeral expenses, mortgage, clearing of outstanding bills, especially hospital bills, and clear other debts. It can also cover education for the deceased children.

In the UK, there are over 50 life insurance companies that one should learn about and hence get to decide which life insurance best suits him and will be of most benefit to the ones left behind. Life Insurance policies come with a fixed term of length, which is specified by the policy holder.

The term of policy specifies how long the policy runs for. It’s only during this term that one can make a claim. Therefore, you should take your time to decide on the duration of your insurance policy, as this is a very important decision that could affect your loved ones, maybe forever.

In theUK, there are two types of insurance policies that one should consider; level and decreasing. Level term policy is a fixed amount set of amount which will not change no matter how far into the term a claim is made.

A decreasing or mortgage policy is one which is meant to pay up the mortgage once the policy holder is deceased. As a result, the amount paid when a claim is made will decrease overtime with the decrease in the mortgage.

Having a life insurance is the best gift you can leave your loved ones with. So have one if you do not.

Tags: