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  1. I fear many people avoid approaching an Advisor as they are unsure as to the cost of Life Insurance. The truth is there are many variables and factors that affect this.

    There are a couple of different types of Life Insurance that affect the  cost, these are:

    • Decreasing Term Assurance – recommended to protect a mortgage or other loans. This is the cheapest form of Life Insurance whereby the premiums remain the same throughout (on Guaranteed Premiums) but the cover decreases at a set rate which is chosen when taken out.
    • Level Term Assurance – recommended to a specific term length, for example to retirement or even to age 90. Also recommended for an interest only mortgage. This type costs more than the above.
    • Family Income Benefit – recommended if you would like a monthly income rather than one lump sum. This is particularly attractive for those with young children where funds can be paid into a trust.
    • Whole of Life Insurance – Guaranteed to pay out no matter the age and because of this does come with a higher premium.
    • Over 50’s Life Insurance – Guaranteed acceptance so no medical underwriting to be completed. Aslong as premiums are paid it pays out no matter what age you die.

     

    How much cover do you need?

    The amount of cover you want to have will affect the premiums. I firstly look at protecting the mortgage and then speak to my clients about other priorities taking their budget into consideration.

    As you have probably guessed, it is very difficult to tell you exactly how much Life Insurance will cost based on the above considerations but there are also other factors:

    • Your age
    • Your health
    • Whether you smoke or not
    • Your lifestyle
    • Family History

    The younger and healthier you are the lower the premiums will be. I meet with clients on a regular basis and unfortunately many are either declined cover or are required to pay a higher premium due to their health.

    Follow us on Facebook where I will be providing examples of cover amounts and their costs.

    Talk to me and receive a personalised quote for you and your family. If you have any questions relating to any medical conditions I can advise on this and carry out any research prior to providing quotes.

    -          Leanne

  2. As an Advisor I am aware that most people don't enjoy talking about Life Insurance. Have you avoided talking to an Advisor in the past, told someone you don't need it? In this post I am going to talk about when you might need it.

    Firstly, alot of us think we are invincible, that nothing will happen to us. People say things such as 'I don't need Life Insurance, I am young and healthy'.

    The truth is that sadly anything can happen and working in my industry I hear real stories of people who have had Life Insurance and have provided for loved ones and others where they haven't had any cover and have left their family with nothing. I have seen fundraising pages for families because they couldn't pay for a funeral and have been left in a financial mess.

    When might you need Life Insurance?

    - If you are single with no kids but you want to leave money to pay for a funeral, to pay back money borrowed from a family member or to say thank you for support they have given you.

    - If you are a Single Parent and want to ensure that guardians will have money to take care of your child or leave money for your child if they are over the age of 18. This might be to help them buy their first car or house.

    - If you are in a relationship/married with no children it is likely you want to ensure that your partner/spouse can pay off a mortgage or other debts or perhaps to replace lost income for a number of years.

    - If you are in a relationship/married with children you will want to ensure that your family will have financial security, to pay off a mortgage/debts, provide a replacement income and perhaps to leave an additional lump sum for children when they are over 18. There are many options.

    Taking out Life Insurance whilst young and healthy is more affordable and more options are available. Life Insurance itself is affordable, simple and provides funds in the event of terminal illness or death. 

    So you see, Life Insurance isn't a one size fits all but it can be beneficial for many reasons.

    Look out for more blog posts on costs, types and benefits of Life Insurance.

    Call/e-mail me today to find out more.